Baker Hughes, a GE (NYSE: BHGE) and Weatherford International (NYSE:WFT) are both oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, institutional ownership, profitability, dividends and earnings.
Earnings and Valuation
This table compares Baker Hughes, a GE and Weatherford International’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Baker Hughes, a GE||$17.26 billion||0.80||$36.00 million||$0.52||62.63|
|Weatherford International||$5.70 billion||0.46||-$2.81 billion||($1.16)||-2.26|
Baker Hughes, a GE has higher revenue and earnings than Weatherford International. Weatherford International is trading at a lower price-to-earnings ratio than Baker Hughes, a GE, indicating that it is currently the more affordable of the two stocks.
Baker Hughes, a GE pays an annual dividend of $2.16 per share and has a dividend yield of 6.6%. Weatherford International does not pay a dividend. Baker Hughes, a GE pays out 415.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Risk & Volatility
Baker Hughes, a GE has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500. Comparatively, Weatherford International has a beta of 2.34, indicating that its stock price is 134% more volatile than the S&P 500.
Insider & Institutional Ownership
92.3% of Baker Hughes, a GE shares are held by institutional investors. 0.2% of Baker Hughes, a GE shares are held by insiders. Comparatively, 0.4% of Weatherford International shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This table compares Baker Hughes, a GE and Weatherford International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Baker Hughes, a GE||-2.79%||0.10%||0.07%|
This is a breakdown of recent ratings and recommmendations for Baker Hughes, a GE and Weatherford International, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Baker Hughes, a GE||0||11||11||0||2.50|
Baker Hughes, a GE presently has a consensus price target of $36.63, suggesting a potential upside of 12.45%. Weatherford International has a consensus price target of $4.87, suggesting a potential upside of 85.72%. Given Weatherford International’s stronger consensus rating and higher possible upside, analysts plainly believe Weatherford International is more favorable than Baker Hughes, a GE.
Baker Hughes, a GE beats Weatherford International on 10 of the 16 factors compared between the two stocks.
About Baker Hughes, a GE
Baker Hughes, a GE company provides integrated oilfield products, services, and digital solutions worldwide. Its Oilfield Services segment offers drilling, wireline, evaluation, completion, production, and intervention services; and drilling and completions fluids, completions tools and systems, wellbore intervention tools and services, artificial lift systems, pressure pumping systems, and oilfield and industrial chemicals for integrated oil and natural gas, and oilfield service companies for onshore and offshore operations. Its Oilfield Equipment segment designs and manufactures onshore and offshore drilling and production systems; equipment for floating production platforms; deepwater drilling equipment; subsea production systems; and flexible pipe products for operating environments. It also provides installation and decommissioning solutions; various services and solutions related to onshore and offshore drilling activities; and services for installation, technical support, and well access to oil and gas field developers, and drilling and oil companies. Its Turbomachinery & Process Solutions segment designs, manufactures, maintains, and upgrades rotating equipment; offers drivers, driven equipment, and flow control systems, as well as turnkey solutions, such as power generation modules, waste heat/energy recovery, energy storage, modularized small and large liquefaction plants, carbon capture, and storage/use facilities solutions; and provides system upgrades and conversion solutions. This segment serves upstream, midstream, downstream, onshore and offshore, industrial, engineering, procurement, and construction companies. Its Digital Solutions segment provides operating technologies; condition monitoring, inspection technologies, measurement, sensing, and pipeline solutions; and software solutions. It serves through direct and indirect channels. The company is based in Houston, Texas. Baker Hughes, a GE company is a subsidiary of General Electric Company.
About Weatherford International
Weatherford International Plc provides equipment and services to the oil and natural gas exploration and production industry. It operates its business through the following business groups: Formation Evaluation & Well Construction, Completion & Production and Land Drilling Rigs. The Formation Evaluation & Well Construction business group offers services such as controlled-pressure drilling and testing, drilling, tubular running, drilling tools, integrated drilling, wireline services, re-entry and fishing, cementing, liner systems, integrated laboratory services and surface logging. The Completion & Production business group pertains for service lines, including artificial lift systems, stimulation and chemicals, completion systems and pipeline and specialty services. The Land Drilling Rigs provides onshore contract drilling services and related operations to the oil and gas industries globally. The company was founded in 1941 and is headquartered in Baar, Switzerland.
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