Tidewater (NYSE:TDW) and Schlumberger (NYSE:SLB) are both oils/energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, institutional ownership, valuation, earnings and profitability.
Institutional & Insider Ownership
84.1% of Tidewater shares are held by institutional investors. Comparatively, 73.2% of Schlumberger shares are held by institutional investors. 0.7% of Tidewater shares are held by insiders. Comparatively, 0.6% of Schlumberger shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Volatility & Risk
Tidewater has a beta of 1.89, meaning that its share price is 89% 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.
Analyst Ratings
This is a summary of current ratings and price targets for Tidewater and Schlumberger, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Tidewater | 0 | 0 | 0 | 0 | N/A |
Schlumberger | 2 | 6 | 13 | 0 | 2.52 |
Schlumberger has a consensus target price of $24.68, suggesting a potential downside of 5.37%. Given Schlumberger's higher probable upside, analysts plainly believe Schlumberger is more favorable than Tidewater.
Earnings and Valuation
This table compares Tidewater and Schlumberger's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Tidewater | $486.55 million | 0.97 | $-141,740,000.00 | ($2.39) | -4.84 |
Schlumberger | $32.92 billion | 1.11 | $-10,137,000,000.00 | $1.47 | 17.73 |
Tidewater has higher earnings, but lower revenue than Schlumberger. Tidewater is trading at a lower price-to-earnings ratio than Schlumberger, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Tidewater and Schlumberger's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Tidewater | -53.51% | -7.20% | -4.59% |
Schlumberger | -40.15% | 7.34% | 2.46% |
Summary
Schlumberger beats Tidewater on 9 of the 13 factors compared between the two stocks.