Aker Solutions vs TechnipFMC Which Is Superior?

Aker Solutions and TechnipFMC are two major players in the oil and gas industry, providing engineering, procurement, construction, and installation services to energy companies worldwide. Both companies have a strong track record of delivering innovative solutions and have a global presence. Investors looking to invest in the oil and gas sector may consider these stocks for their potential growth and stability. However, it is important to conduct thorough research and analysis before making any investment decisions.

Aker Solutions or TechnipFMC?

When comparing Aker Solutions and TechnipFMC, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Aker Solutions and TechnipFMC.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Aker Solutions has a dividend yield of 4.08%, while TechnipFMC has a dividend yield of 0.69%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Aker Solutions reports a 5-year dividend growth of 0.00% year and a payout ratio of 8.18%. On the other hand, TechnipFMC reports a 5-year dividend growth of 0.00% year and a payout ratio of 12.78%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Aker Solutions P/E ratio at 1.98 and TechnipFMC's P/E ratio at 18.51. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Aker Solutions P/B ratio is 1.17 while TechnipFMC's P/B ratio is 3.81.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Aker Solutions has seen a 5-year revenue growth of -0.21%, while TechnipFMC's is -0.35%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Aker Solutions's ROE at 60.29% and TechnipFMC's ROE at 21.70%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are kr48.98 for Aker Solutions and $28.82 for TechnipFMC. Over the past year, Aker Solutions's prices ranged from kr34.32 to kr55.20, with a yearly change of 60.84%. TechnipFMC's prices fluctuated between $18.33 and $29.85, with a yearly change of 62.85%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.