Ocean Rig UDW (ORIG) and Noble Corporation (NE) Critical Review

Ocean Rig UDW (NASDAQ: ORIG) and Noble Corporation (NYSE:NE) are both oils/energy companies, but which is the better business? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, valuation, analyst recommendations and institutional ownership.

Institutional & Insider Ownership

95.6% of Noble Corporation shares are held by institutional investors. 1.6% of Noble Corporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Ocean Rig UDW and Noble Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ocean Rig UDW 0 0 0 0 N/A
Noble Corporation 6 17 4 0 1.93

Noble Corporation has a consensus target price of $5.65, indicating a potential upside of 45.31%. Given Noble Corporation’s higher probable upside, analysts clearly believe Noble Corporation is more favorable than Ocean Rig UDW.

Profitability

This table compares Ocean Rig UDW and Noble Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ocean Rig UDW N/A N/A N/A
Noble Corporation -122.04% -3.19% -1.83%

Risk & Volatility

Ocean Rig UDW has a beta of 1.64, meaning that its stock price is 64% more volatile than the S&P 500. Comparatively, Noble Corporation has a beta of 2.27, meaning that its stock price is 127% more volatile than the S&P 500.

Earnings and Valuation

This table compares Ocean Rig UDW and Noble Corporation’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Ocean Rig UDW $1.28 billion 1.61 $847.65 million ($40.71) -0.61
Noble Corporation $1.40 billion 0.68 $639.70 million ($7.21) -0.54

Ocean Rig UDW has higher revenue, but lower earnings than Noble Corporation. Ocean Rig UDW is trading at a lower price-to-earnings ratio than Noble Corporation, indicating that it is currently the more affordable of the two stocks.

Summary

Noble Corporation beats Ocean Rig UDW on 7 of the 12 factors compared between the two stocks.

About Ocean Rig UDW

Ocean Rig UDW Inc is a Cyprus-based offshore drilling contractor that provides oilfield services for oil and gas exploration, development and production drilling, and specializes in the ultra-deepwater and harsh-environment segment of the drilling industry. The Company owns and operates approximately 13 offshore ultra deepwater drilling units, comprising of ultra deepwater semisubmersible drilling rigs and ultra deepwater drill-ships. The Company’s drilling units include Leiv Eiriksson, Ocean Rig Corcovado, Ocean Rig Poseidon, Ocean Rig Mykonos, Ocean Rig Mylos, Ocean Rig Skyros and Ocean Rig Athena. In addition, the Company, through its wholly owned subsidiary, provides supervisory management services including onshore management to its operating drilling units and drilling units under construction.

About Noble Corporation

Noble Corporation is an offshore drilling contractor for the oil and gas industry. The Company performs contract drilling services with its fleet of 79 mobile offshore drilling units and one floating production storage and offloading unit (NYSE:NE) located globally.

Receive News & Ratings for Ocean Rig UDW Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Ocean Rig UDW Inc. and related companies with MarketBeat.com's FREE daily email newsletter.

Latest News

Leave a Reply