Woodward vs Baker Hughes Co Which Is More Profitable?

Woodward, Inc. and Baker Hughes Co. are two leading companies in the energy sector, each specializing in different aspects of the industry. Woodward is known for its expertise in designing and manufacturing control systems for a variety of applications, while Baker Hughes is a major player in the oilfield services market. Both companies are publicly traded on the stock market, and investors often compare their performance and financial outlooks when considering investment opportunities in the energy sector. This analysis will delve deeper into the stocks of Woodward and Baker Hughes, evaluating their financials, market trends, and potential for growth.

Woodward or Baker Hughes Co?

When comparing Woodward and Baker Hughes Co, 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 Woodward and Baker Hughes Co.

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. Woodward has a dividend yield of 0.57%, while Baker Hughes Co has a dividend yield of 1.99%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Woodward reports a 5-year dividend growth of 9.07% year and a payout ratio of 15.63%. On the other hand, Baker Hughes Co reports a 5-year dividend growth of 4.01% year and a payout ratio of 36.96%.

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 Woodward P/E ratio at 28.08 and Baker Hughes Co's P/E ratio at 18.74. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Woodward P/B ratio is 4.81 while Baker Hughes Co's P/B ratio is 2.59.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Woodward has seen a 5-year revenue growth of 0.29%, while Baker Hughes Co's is -0.54%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Woodward's ROE at 16.85% and Baker Hughes Co's ROE at 14.33%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $176.01 for Woodward and €40.37 for Baker Hughes Co. Over the past year, Woodward's prices ranged from $131.12 to $201.64, with a yearly change of 53.78%. Baker Hughes Co's prices fluctuated between €26.22 and €42.84, with a yearly change of 63.37%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.