NOV vs Halliburton Which Is More Profitable?

NOV and Halliburton are two leading companies in the oil and gas industry, both specializing in providing equipment and services to the sector. As key players in the energy market, their stocks are closely followed by investors looking to capitalize on the industry's growth and performance. This comparison between NOV and Halliburton stocks will examine their financial health, market position, and potential for future growth, helping investors make informed decisions about their investment strategies.

NOV or Halliburton?

When comparing NOV 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 NOV 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. NOV has a dividend yield of 1.93%, while Halliburton has a dividend yield of 2.81%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. NOV reports a 5-year dividend growth of 6.58% year and a payout ratio of 17.01%. On the other hand, Halliburton reports a 5-year dividend growth of -1.14% year and a payout ratio of 23.99%.

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 8.71 and Halliburton's P/E ratio at 8.46. 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 0.86 while Halliburton's P/B ratio is 2.01.

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 Halliburton's is 0.01%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with NOV's ROE at 9.95% and Halliburton's ROE at 24.71%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $13.92 for NOV and $23.42 for Halliburton. Over the past year, NOV's prices ranged from $13.78 to $21.20, with a yearly change of 53.85%. Halliburton's prices fluctuated between $23.42 and $41.56, with a yearly change of 77.46%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.