Baker Hughes (NYSE:BKR) & Weatherford International (NYSE:WFTIQ) Head to Head Comparison

Baker Hughes (NYSE:BKR) and Weatherford International (OTCMKTS:WFTIQ) are both oils/energy companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.

Earnings and Valuation

This table compares Baker Hughes and Weatherford International’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Baker Hughes $23.84 billion 0.97 $128.00 million $0.85 26.41
Weatherford International $5.74 billion 0.00 -$2.81 billion ($0.59) -0.03

Baker Hughes has higher revenue and earnings than Weatherford International. Weatherford International is trading at a lower price-to-earnings ratio than Baker Hughes, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Baker Hughes and Weatherford International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Baker Hughes 0.54% 1.36% 0.89%
Weatherford International -68.93% N/A -13.49%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Baker Hughes and Weatherford International, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Baker Hughes 2 1 6 0 2.44
Weatherford International 0 0 1 0 3.00

Baker Hughes presently has a consensus target price of $27.43, suggesting a potential upside of 22.18%. Given Baker Hughes’ higher probable upside, research analysts clearly believe Baker Hughes is more favorable than Weatherford International.

Institutional and Insider Ownership

97.8% of Baker Hughes shares are held by institutional investors. Comparatively, 1.0% of Weatherford International shares are held by institutional investors. 0.2% of Baker Hughes shares are held by insiders. Comparatively, 0.4% of Weatherford International shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Baker Hughes beats Weatherford International on 11 of the 13 factors compared between the two stocks.

Baker Hughes Company Profile

Baker Hughes Company provides integrated oilfield products, services, and digital solutions worldwide. Its Oilfield Services segment offers drilling, wireline, evaluation, completion, production, and intervention services; and drilling and completions fluids, completions tools and systems, wellbore intervention tools and services, artificial lift systems, pressure pumping systems, and oilfield and industrial chemicals for integrated oil and natural gas and oilfield service companies. The company's Oilfield Equipment segment designs and manufactures products and services, including pressure control equipment and services, subsea production systems and services, drilling equipment, and flexible pipeline systems; and onshore and offshore drilling and production systems, and equipment for floating production platforms, as well as provides a range of services related to onshore and offshore drilling activities. Its Turbomachinery & Process Solutions segment provides equipment and related services for mechanical-drive, compression, and power-generation applications across the oil and gas industry. Its product portfolio includes drivers, compressors, and turnkey solutions; and pumps, valves, and compressed natural gas and small-scale liquefied natural gas solutions. This segment serves upstream, midstream, onshore and offshore, industrial, engineering, procurement, and construction companies. The company's Digital Solutions segment provides sensor-based measurement, non-destructive testing and inspection, turbine, generator and plant controls, and condition monitoring, as well as pipeline integrity solutions for a range of industries, including oil and gas, power generation, aerospace, metals, and transportation. It serves through direct and indirect channels. The company was formerly known as Baker Hughes, a GE company and changed its name to Baker Hughes Company in October 2019. Baker Hughes Company is based in Houston, Texas.

Weatherford International Company Profile

Weatherford International plc, an oilfield service company, provides equipment and services for the drilling, evaluation, completion, production, and intervention of oil and natural gas wells worldwide. The company operates in two segments, Western Hemisphere and Eastern Hemisphere. It offers artificial lift systems, including reciprocating rod, progressing cavity pumping, gas, hydraulic, plunger, and hybrid lift systems, as well as related automation and control systems; pressure pumping and reservoir stimulation services, such as acidizing, fracturing and fluid systems, cementing, and coiled-tubing intervention; and drill stem test tools, and surface well testing and multiphase flow measurement services. The company also provides safety, downhole reservoir monitoring, flow control, and multistage fracturing systems, as well as sand-control technologies, and production and isolation packers; liner hangers to suspend a casing string in high-temperature and high-pressure wells; cementing products, including plugs, float and stage equipment, and torque-and-drag reduction technology for zonal isolation; and pre-job planning and installation services. In addition, it offers directional drilling services, and logging and measurement services while drilling; services related to rotary-steerable systems, high-temperature and high-pressure sensors, drilling reamers, and circulation subs; managed pressure drilling, conventional mud-logging, drilling instrumentation, gas analysis, wellsite consultancy, and open hole and cased-hole logging services; reservoir solutions and software products; and intervention and remediation services. Further, the company provides equipment and related services through a fleet of land drilling and workover rigs. Weatherford International plc was founded in 1972 and is based in Huston, Texas. On July 1, 2019, Weatherford International, plc, along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas.

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