Schlumberger (SLB) Competitors

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

Does the media refer more to BKR or SLB?

In the previous week, Schlumberger had 5 more articles in the media than Baker Hughes. MarketBeat recorded 30 mentions for Schlumberger and 25 mentions for Baker Hughes. Schlumberger's average media sentiment score of 0.83 beat Baker Hughes' score of 0.77 indicating that Schlumberger is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Baker Hughes	12 Very Positive mention(s)	1 Positive mention(s)	7 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive
Schlumberger	19 Very Positive mention(s)	3 Positive mention(s)	2 Neutral mention(s)	3 Negative mention(s)	0 Very Negative mention(s)	Positive

Is BKR or SLB more profitable?

Schlumberger has a net margin of 11.62% compared to Baker Hughes' net margin of 10.51%. Schlumberger's return on equity of 21.76% beat Baker Hughes' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Baker Hughes	10.51%	14.70%	6.47%
Schlumberger	11.62%	21.76%	9.73%

Which has higher earnings and valuation, BKR or SLB?

Schlumberger has higher revenue and earnings than Baker Hughes. Schlumberger 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	1.39	$2.98B	$2.93	13.34
Schlumberger	$36.29B	1.31	$4.46B	$2.95	11.86

Do analysts recommend BKR or SLB?

Baker Hughes presently has a consensus price target of $48.50, suggesting a potential upside of 24.07%. Schlumberger has a consensus price target of $50.85, suggesting a potential upside of 45.38%. Given Schlumberger's stronger consensus rating and higher probable upside, analysts plainly believe Schlumberger is more favorable than Baker Hughes.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Baker Hughes	0 Sell rating(s)	2 Hold rating(s)	18 Buy rating(s)	0 Strong Buy rating(s)	2.90
Schlumberger	0 Sell rating(s)	3 Hold rating(s)	15 Buy rating(s)	2 Strong Buy rating(s)	2.95

Do insiders & institutionals have more ownership in BKR or SLB?

92.1% of Baker Hughes shares are owned by institutional investors. Comparatively, 82.0% of Schlumberger shares are owned by institutional investors. 0.3% of Baker Hughes shares are owned by insiders. Comparatively, 0.3% of Schlumberger shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Which has more risk & volatility, BKR or SLB?

Baker Hughes has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500. Comparatively, Schlumberger has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500.

Is BKR or SLB a better dividend stock?

Baker Hughes pays an annual dividend of $0.92 per share and has a dividend yield of 2.4%. Schlumberger pays an annual dividend of $1.14 per share and has a dividend yield of 3.3%. Baker Hughes pays out 31.4% of its earnings in the form of a dividend. Schlumberger pays out 38.6% 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 increased its dividend for 4 consecutive years and Schlumberger has increased its dividend for 5 consecutive years. Schlumberger is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Schlumberger beats Baker Hughes on 14 of the 20 factors compared between the two stocks.