Halliburton vs Schlumberger Which Should You Buy?

Halliburton and Schlumberger are two of the largest oilfield services companies in the world, providing a wide range of products and services to the energy industry. Both companies have faced challenges in recent years due to fluctuations in oil prices and market demand. However, Halliburton has been able to maintain a stronger financial position compared to Schlumberger, leading to a more stable stock performance. Investors closely watch these two stocks for insight into the health of the energy sector.

Halliburton or Schlumberger?

When comparing Halliburton 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 Halliburton 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. Halliburton has a dividend yield of 2.78%, while Schlumberger has a dividend yield of 3.05%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Halliburton reports a 5-year dividend growth of -2.33% year and a payout ratio of 23.36%. 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 Halliburton P/E ratio at 10.44 and Schlumberger's P/E ratio at 14.03. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Halliburton P/B ratio is 2.57 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, Halliburton has seen a 5-year revenue growth of -0.07%, while Schlumberger's is -0.02%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Halliburton's ROE at 25.87% and Schlumberger's ROE at 21.45%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $30.09 for Halliburton and $44.20 for Schlumberger. Over the past year, Halliburton's prices ranged from $27.26 to $41.56, with a yearly change of 52.46%. 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.