Archrock vs Transocean

This page compares Archrock Inc. and Transocean Ltd., examining business models, financial performance, and market context in a neutral, accessible way. It presents their activities, strategy, and industry standing to help readers understand how these organisations operate within their sectors. Educational content, not financial advice.

Comparison Snapshot

Key Financial Metrics

AROC

Metric

RIG

$4.72B

Market Cap

$4.74B

12.74%

Potential Profit

-4.56%

Buy

Analyst Rating

Hold

Investment Analysis

Archrock

AROC

Pros

Archrock's 2024 revenue increased by nearly 17% year-over-year, reaching $1.16 billion with continued growth into 2025.
The company maintains a strong gross margin of 64% and a net profit margin exceeding 18%, reflecting operational efficiency.
Archrock pays a consistent dividend yield of around 3.37%, supported by solid net income and positive cash flow.

Considerations

The company carries a relatively high debt-to-equity ratio of 180%, indicating leveraged balance sheet risks.
Its price-to-earnings ratio is above the energy sector average, which may suggest a premium valuation sometimes vulnerable to market shifts.
Archrock's stock beta around 1.07 points to above-average volatility relative to the overall market.

Transocean

RIG

Pros

Transocean is a leading offshore drilling contractor with a sizable global fleet, benefiting from rising offshore exploration demand.
The company has been focusing on higher-specification rigs, positioning it well for premium contracts in deepwater and ultra-deepwater markets.
Transocean is working on improving contract backlogs and securing multi-year agreements, which may enhance revenue visibility.

Considerations

Transocean faces significant cyclicality and commodity price exposure, making its earnings highly sensitive to oil price fluctuations.
The offshore drilling sector is experiencing increasing regulatory scrutiny and environmental pressures, potentially increasing compliance costs.
Transocean’s operational complexity and ongoing fleet renewal involve execution risks and high capital expenditures.

About The Companies

Archrock (AROC)

Archrock Inc. is an American energy infrastructure company that specialises in midstream natural gas compression. Its services are crucial for transporting natural gas from production areas to consumers through pipelines across the United States. The company operates through two main business segments. The 'Contract Operations' segment involves leasing its own fleet of compression equipment and providing the personnel to run it. The 'Aftermarket Services' division offers maintenance, repair, overhaul, and parts for customers who own their own compression equipment. By providing these essential services, Archrock plays a significant role in the US energy value chain. As with any company in the energy sector, its performance can be influenced by factors like commodity prices and regulatory changes. Potential investors should consider these aspects as part of their research, remembering that all investments carry risk and past performance is not a guide to the future.

Transocean (RIG)

Transocean Ltd (RIG) is a specialist offshore drilling contractor that operates a fleet of deepwater and harsh-environment drilling rigs, including floaters and jack-ups. Investors should know the business is capital‑intensive and closely tied to oil and gas exploration and production spending; revenues and utilisation tend to rise and fall with oil prices and industry cycle dynamics. Key considerations include contract backlog and day‑rates, fleet age and modernisation, operational and environmental risks, and the company’s balance‑sheet position relative to its capital expenditure needs. Given the cyclical nature of offshore drilling, returns can be volatile and are not guaranteed. This summary is for general information and education only, not personal investment advice. Investors should assess how a cyclical, high‑capital business fits their time horizon, risk tolerance and diversification needs, and consider seeking regulated financial advice before acting.

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Archrock vs Transocean

Comparison Snapshot

Investment Analysis

Archrock

Pros

Considerations

Transocean

Pros

Considerations

About The Companies

Which Baskets Do They Appear In?

Which Baskets Do They Appear In?

Buy AROC or RIG in Nemo

Zero Commission

Trusted & Regulated

6% Interest on Cash

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Frequently asked questions

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Which financial metrics are highlighted for Archrock and Transocean, and why do they matter?

How does Archrock’s debt level interact with its profitability as shown here?

What does Transocean’s backlog and fleet focus imply for revenue visibility?

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Comparison Snapshot

About The Companies