Baker Hughes (BKR) Competitors

Baker Hughes (NASDAQ:BKR) and Diamondback Energy (NASDAQ:FANG) are both large-cap energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, media sentiment, analyst recommendations, risk and dividends.

Is BKR or FANG more profitable?

Diamondback Energy has a net margin of 27.25% compared to Baker Hughes' net margin of 11.04%. Baker Hughes' return on equity of 14.56% beat Diamondback Energy's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Baker Hughes	11.04%	14.56%	6.53%
Diamondback Energy	27.25%	9.48%	5.63%

Is BKR or FANG a better dividend stock?

Baker Hughes pays an annual dividend of $0.92 per share and has a dividend yield of 2.1%. Diamondback Energy pays an annual dividend of $4.00 per share and has a dividend yield of 2.8%. Baker Hughes pays out 30.1% of its earnings in the form of a dividend. Diamondback Energy pays out 28.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Baker Hughes has raised its dividend for 4 consecutive years and Diamondback Energy has raised its dividend for 7 consecutive years. Diamondback Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Do institutionals & insiders hold more shares of BKR or FANG?

92.1% of Baker Hughes shares are owned by institutional investors. Comparatively, 90.0% of Diamondback Energy shares are owned by institutional investors. 0.3% of Baker Hughes shares are owned by insiders. Comparatively, 0.7% of Diamondback Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Do analysts prefer BKR or FANG?

Baker Hughes presently has a consensus price target of $51.47, suggesting a potential upside of 18.91%. Diamondback Energy has a consensus price target of $191.59, suggesting a potential upside of 35.50%. Given Diamondback Energy's stronger consensus rating and higher probable upside, analysts plainly believe Diamondback Energy is more favorable than Baker Hughes.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Baker Hughes	0 Sell rating(s)	3 Hold rating(s)	18 Buy rating(s)	0 Strong Buy rating(s)	2.86
Diamondback Energy	0 Sell rating(s)	1 Hold rating(s)	18 Buy rating(s)	2 Strong Buy rating(s)	3.05

Does the media prefer BKR or FANG?

In the previous week, Diamondback Energy had 20 more articles in the media than Baker Hughes. MarketBeat recorded 50 mentions for Diamondback Energy and 30 mentions for Baker Hughes. Baker Hughes' average media sentiment score of 0.98 beat Diamondback Energy's score of 0.91 indicating that Baker Hughes is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Baker Hughes	20 Very Positive mention(s)	1 Positive mention(s)	5 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive
Diamondback Energy	22 Very Positive mention(s)	12 Positive mention(s)	5 Neutral mention(s)	3 Negative mention(s)	1 Very Negative mention(s)	Positive

Which has preferable valuation and earnings, BKR or FANG?

Diamondback Energy has lower revenue, but higher earnings than Baker Hughes. Diamondback Energy is trading at a lower price-to-earnings ratio than Baker Hughes, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Baker Hughes	$27.83B	1.53	$2.98B	$3.06	14.15
Diamondback Energy	$14.01B	2.95	$3.34B	$14.07	10.05

Which has more volatility and risk, BKR or FANG?

Baker Hughes has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500. Comparatively, Diamondback Energy has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500.

Summary

Diamondback Energy beats Baker Hughes on 13 of the 19 factors compared between the two stocks.