Baker Hughes vs Halliburton Which Is Superior?

Baker Hughes and Halliburton are both major players in the oil and gas industry, offering a range of products and services to support exploration and production activities. While Baker Hughes focuses primarily on oilfield services, Halliburton offers a more diverse portfolio of offerings. Both companies have faced challenges in recent years due to the volatile nature of the energy market, but have shown resilience and adaptability. Investors interested in the energy sector may find opportunities for growth and stability in both Baker Hughes and Halliburton stocks.

Baker Hughes or Halliburton?

When comparing Baker Hughes and Halliburton, 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 Baker Hughes and Halliburton.

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. Baker Hughes has a dividend yield of 2.38%, while Halliburton has a dividend yield of 2.79%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Baker Hughes reports a 5-year dividend growth of 1.61% year and a payout ratio of 36.96%. On the other hand, Halliburton reports a 5-year dividend growth of -2.33% year and a payout ratio of 23.36%.

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 Baker Hughes P/E ratio at 19.55 and Halliburton's P/E ratio at 10.42. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Baker Hughes P/B ratio is 2.71 while Halliburton's P/B ratio is 2.56.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Baker Hughes has seen a 5-year revenue growth of -0.53%, while Halliburton's is -0.07%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Baker Hughes's ROE at 14.29% and Halliburton's ROE at 25.87%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $42.97 for Baker Hughes and $28.98 for Halliburton. Over the past year, Baker Hughes's prices ranged from $28.32 to $44.32, with a yearly change of 56.50%. Halliburton's prices fluctuated between $27.26 and $41.56, with a yearly change of 52.46%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.