NOV vs Baker Hughes

NOV and Baker Hughes are two prominent companies in the oil and gas industry, both providing innovative solutions and services to the sector. While NOV focuses on drilling equipment and technology, Baker Hughes offers a wide range of products and services including drilling and evaluation, completions, and production. Investors keen on the energy sector may find these two stocks appealing due to their strong market presence and potential for growth in a recovering industry. Let's compare and analyze the performance of NOV and Baker Hughes stocks in detail.

NOV or Baker Hughes?

When comparing NOV and Baker Hughes, 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 NOV and Baker Hughes.

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. NOV has a dividend yield of 2.07%, while Baker Hughes has a dividend yield of 2.29%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. NOV reports a 5-year dividend growth of 0.00% year and a payout ratio of 8.42%. On the other hand, Baker Hughes reports a 5-year dividend growth of 1.61% year and a payout ratio of 41.21%.

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 NOV P/E ratio at 5.86 and Baker Hughes's P/E ratio at 18.16. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. NOV P/B ratio is 0.97 while Baker Hughes's P/B ratio is 2.32.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, NOV has seen a 5-year revenue growth of -0.02%, while Baker Hughes's is -0.53%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with NOV's ROE at 17.39% and Baker Hughes's ROE at 12.88%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $15.54 for NOV and $36.27 for Baker Hughes. Over the past year, NOV's prices ranged from $15.47 to $21.53, with a yearly change of 39.17%. Baker Hughes's prices fluctuated between $28.32 and $39.05, with a yearly change of 37.89%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.