Baker Hughes vs Schlumberger Which Is More Lucrative?

Baker Hughes and Schlumberger are two prominent companies in the oilfield services industry. Both companies provide a wide range of products and services related to the exploration and production of oil and gas. Investors often compare their stocks to determine which one offers better potential for growth and returns. Baker Hughes focuses on oilfield services, digital solutions, and equipment manufacturing, while Schlumberger is known for its technology and expertise in drilling and reservoir characterization. Analyzing their financial performance, market presence, and recent developments can help investors make informed decisions when investing in these stocks.

Baker Hughes or Schlumberger?

When comparing Baker Hughes and Schlumberger, 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 Schlumberger.

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 Schlumberger has a dividend yield of 3.05%. 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, Schlumberger reports a 5-year dividend growth of -10.09% year and a payout ratio of 33.50%.

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 Schlumberger's P/E ratio at 14.01. 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 Schlumberger's P/B ratio is 2.92.

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 Schlumberger's is -0.02%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Baker Hughes's ROE at 14.29% and Schlumberger's ROE at 21.45%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $42.97 for Baker Hughes and $43.20 for Schlumberger. Over the past year, Baker Hughes's prices ranged from $28.32 to $44.32, with a yearly change of 56.50%. Schlumberger's prices fluctuated between $38.66 and $55.69, with a yearly change of 44.05%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.