RIG vs SDRL: How Transocean Ltd and Seadrill Compare (2026)
Last updated August 2026
Short answer
RIG and SDRL are similarly sized, but SDRL trades noticeably cheaper on forward earnings (12.44x vs 18.52x): the market is paying up for RIG's profile and pricing SDRL more conservatively, or for faster growth. Which you prefer comes down to the drivers you believe, and whether adding either over-concentrates what you already own.
RIG vs SDRL: the tie-breaker metrics
Same yardstick, side by side (as of August 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.
| Metric | RIG | SDRL | What it tells you |
|---|---|---|---|
| Forward P/E | 18.52 | 12.44 | Valuation on next year's expected earnings, the same yardstick for both. Lower is cheaper for that growth; higher means the market is paying up. |
| Beta | 1.31 | 1.38 | Volatility vs the market. Above 1 swings harder than the index; below 1 is steadier. Higher beta means bigger drawdowns to hold through. |
| Price vs 52-week range | 52% of range | 55% of range | Where today's price sits between the 52-week low and high. Near the high is momentum with less margin of safety; near the low is out of favor or a discount, depending on why. |
| Price / book | 0.72 | 0.95 | How much you pay over book value. Very high can signal an asset-light, high-return business or a rich price. |
Reading it: SDRL is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.
Before you buy: how RIG and SDRL affect your concentration
The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. RIG and SDRL share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.
This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined RIG and SDRL exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.
What does Transocean Ltd (RIG) do?
Transocean Ltd. (NYSE: RIG) is a leading international provider of offshore contract drilling services, operating one of the highest-specification floating rig fleets in the world. Its fleet of roughly 27 mobile offshore drilling units is concentrated in ultra-deepwater drillships and harsh-environment semisubmersibles, and it contracts these rigs to major oil and gas operators in regions such as Brazil, the US Gulf, Norway, Australia, and the Eastern Mediterranean. Revenue is driven by dayrates (the price per day a rig earns) and utilization, both of which have recovered sharply from the last downcycle as leading-edge ultra-deepwater dayrates have pushed toward and above $500,000 per day.
What does Seadrill (SDRL) do?
Seadrill owns and operates offshore drilling rigs and hires them out to exploration and production companies under multi-well or multi-year contracts. The fleet is concentrated in the high-specification end of the market: seventh-generation ultra-deepwater drillships plus harsh-environment semi-submersibles, working mainly in Brazil, the US Gulf, and West Africa, with Petrobras, ExxonMobil, and other majors as the counterparties. Seadrill does not own the oil it helps find. It sells rig days, so a contract states a dayrate (the fee per day the rig is under contract) and a duration, and revenue is essentially dayrate times contracted days times how much of that time the rig actually operates. Economic utilization ran around 94.6% in early 2026, which is the operational half of the equation. The company also manages rigs for third parties and has periodically bought and sold units rather than building new ones, since a newbuild drillship costs several hundred million dollars and takes years to deliver.
RIG vs SDRL: how do they differ?
Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.
- RIG drivers: Offshore drilling upcycle and dayrates; Backlog conversion and rising visibility.
- SDRL drivers: Backlog conversion and replacement; Ultra-deepwater dayrates.
Which fits which kind of investor
A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: Transocean is a high-beta, capital-intensive cyclical whose fortunes track oil prices and offshore capex, both of which can reverse quickly. For SDRL, offshore drilling is one of the most cyclical businesses in energy, and customer capital budgets are set annually, so a soft oil strip can push a tender out by quarters.
RIG or SDRL: which should you pick?
RIG vs SDRL: the full fundamentals
RIG. Transocean reported Q1 2026 contract drilling revenue of roughly $1.08 billion and net income of about $71 million (around $0.06 diluted EPS), with adjusted EBITDA near $440 million at a margin above 40%. Full-year 2026 guidance calls for contract drilling revenue of roughly $3.8 billion to $3.9 billion. The market capitalization of about $5.6 billion sits alongside a large debt load, so the enterprise value is materially higher than the equity value alone.
SDRL. Seadrill screens on EV/EBITDA rather than earnings, because heavy depreciation on a drillship fleet keeps GAAP net income near or below zero even in quarters when cash generation improves. The company raised its full-year 2026 revenue and EBITDA guidance alongside the first-quarter report, citing early contract starts and operating discipline. Second-quarter 2026 results were scheduled for August 10, 2026, so the figures above reflect the first quarter and are the most recent reported at the time of writing.
Headline figures (approximate, JULY 2026): RIG shows share price ~$5.02, market cap ~$5.6 billion, revenue (ttm) ~$4.0 billion, q1 2026 net income ~$71 million; SDRL shows revenue (q1 2026) ~$358 million, up from ~$335 million a year earlier, adjusted ebitda (q1 2026) ~$97 million, ~27% margin, net income (q1 2026) ~$7 million loss, contract backlog ~$3.1 billion.
The bottom line: RIG vs SDRL
RIG and SDRL are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined RIG and SDRL exposure against your real portfolio. It is not an investment adviser.
Wondering how RIG or SDRL fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in Transocean Ltd with AI
Connect the broker you already use and ask Walnut's AI how RIG fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is the difference between RIG and SDRL?
+
Transocean Ltd. Seadrill owns and operates offshore drilling rigs and hires them out to exploration and production companies under multi-well or multi-year contracts. They show up together because they share investment themes, but they are different businesses, so the better fit depends on which thesis you are expressing.
Is RIG or SDRL the better stock?
+
Neither is universally better; they suit different views and risk levels. Walnut is informational, not investment advice. Compare what each does, the tie-breaker metrics above, and the risks, then decide which fits your thesis and what you already own.
Which is cheaper, RIG or SDRL?
+
On forward P/E (as of August 2026), RIG trades at 18.52x and SDRL at 12.44x, so SDRL is the cheaper of the two on next year's expected earnings. A lower multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is compounding.
Should you own both RIG and SDRL?
+
Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both, and whether adding either over-concentrates you, before you buy.
What are the risks of RIG vs SDRL?
+
RIG: Transocean is a high-beta, capital-intensive cyclical whose fortunes track oil prices and offshore capex, both of which can reverse quickly. The balance sheet still carries more than $5 billion of debt, so a downturn in dayrates or utilization could pressure cash flow and equity value sharply. The Valaris merger faces intensified US antitrust review (including a DOJ Second Request) and could be delayed, altered, or blocked, and at least one law firm is probing whether the terms underpay Valaris holders. Any rig downtime, idle capacity, or contract cancellation directly reduces revenue, and the stock has traded in a wide range (a 52-week low near $2.53 against a high near $7.66), reflecting its volatility. Investors also face dilution and integration risk from the all-stock structure of the deal. SDRL: Offshore drilling is one of the most cyclical businesses in energy, and customer capital budgets are set annually, so a soft oil strip can push a tender out by quarters. Rigs that roll off contract carry most of their cost whether or not they are working, which is why idle time between contracts, not the headline dayrate, is usually what breaks a quarter. Results are lumpy for the same reason: Seadrill posted a net loss of about $7 million in the first quarter of 2026 even while adjusted EBITDA improved to roughly $97 million and revenue reached roughly $358 million, because depreciation on a drillship fleet is heavy. Contract concentration means a single dispute or early termination with a large national oil company can move backlog by hundreds of millions. And the light balance sheet is a current condition, not a permanent one, since fleet acquisitions or a stacked-rig reactivation cycle can consume cash quickly.
Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell RIG or SDRL; figures are approximate and dated (as of August 2026). Verify current data before investing.