Newpark Resources (NYSE:NR) and Schlumberger (NYSE:SLB) are both oils/energy companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, profitability and valuation.
Valuation and Earnings
This table compares Newpark Resources and Schlumberger's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Newpark Resources | $820.12 million | 0.38 | $-12,950,000.00 | $0.08 | 43.38 |
Schlumberger | $32.92 billion | 1.24 | $-10,137,000,000.00 | $1.47 | 19.87 |
Newpark Resources has higher earnings, but lower revenue than Schlumberger. Schlumberger is trading at a lower price-to-earnings ratio than Newpark Resources, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Newpark Resources and Schlumberger's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Newpark Resources | -14.37% | -9.36% | -5.93% |
Schlumberger | -40.15% | 7.34% | 2.46% |
Risk & Volatility
Newpark Resources has a beta of 3.91, meaning that its share price is 291% more volatile than the S&P 500. Comparatively, Schlumberger has a beta of 2.28, meaning that its share price is 128% more volatile than the S&P 500.
Institutional and Insider Ownership
82.2% of Newpark Resources shares are owned by institutional investors. Comparatively, 73.2% of Schlumberger shares are owned by institutional investors. 3.9% of Newpark Resources shares are owned by company insiders. Comparatively, 0.6% of Schlumberger shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Newpark Resources and Schlumberger, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Newpark Resources | 0 | 2 | 0 | 1 | 2.67 |
Schlumberger | 3 | 6 | 17 | 0 | 2.54 |
Newpark Resources currently has a consensus price target of $3.00, suggesting a potential downside of 13.54%. Schlumberger has a consensus price target of $22.9375, suggesting a potential downside of 21.80%. Given Newpark Resources' stronger consensus rating and higher possible upside, research analysts plainly believe Newpark Resources is more favorable than Schlumberger.
Summary
Newpark Resources beats Schlumberger on 8 of the 15 factors compared between the two stocks.