Baker Hughes A GE (NYSE:BHGE) and Freestone Resources (OTCMKTS:FSNR) are both oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, earnings, valuation, dividends and profitability.

Profitability

This table compares Baker Hughes A GE and Freestone Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Baker Hughes A GE 0.16% 0.59% 0.40%
Freestone Resources -110.66% N/A -81.83%

Risk & Volatility

Baker Hughes A GE has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500. Comparatively, Freestone Resources has a beta of 0.48, suggesting that its share price is 52% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Baker Hughes A GE and Freestone Resources, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Baker Hughes A GE 0 8 15 0 2.65
Freestone Resources 0 0 0 0 N/A

Baker Hughes A GE presently has a consensus target price of $36.36, indicating a potential upside of 64.21%. Given Baker Hughes A GE’s higher probable upside, equities analysts plainly believe Baker Hughes A GE is more favorable than Freestone Resources.

Dividends

Baker Hughes A GE pays an annual dividend of $0.72 per share and has a dividend yield of 3.3%. Freestone Resources does not pay a dividend. Baker Hughes A GE pays out 138.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Insider & Institutional Ownership

96.1% of Baker Hughes A GE shares are owned by institutional investors. 0.2% of Baker Hughes A GE shares are owned by insiders. Comparatively, 13.3% of Freestone Resources shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Baker Hughes A GE and Freestone Resources’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Baker Hughes A GE $17.26 billion 0.53 $36.00 million $0.52 42.58
Freestone Resources $1.16 million 2.54 -$1.13 million N/A N/A

Baker Hughes A GE has higher revenue and earnings than Freestone Resources.

Summary

Baker Hughes A GE beats Freestone Resources on 10 of the 13 factors compared between the two stocks.

Baker Hughes A GE Company Profile

Baker Hughes, a GE 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. Its Oilfield Equipment segment designs and manufactures onshore and offshore drilling and production systems; equipment for floating production platforms; deepwater drilling equipment; subsea production systems; and flexible pipe products for operating environments. It also provides installation and decommissioning solutions; services and solutions related to onshore and offshore drilling activities; and services for installation and technical support, and well access to oil and gas field developers, and drilling and oil companies. Its Turbomachinery & Process Solutions segment manufactures, maintains, and upgrades rotating equipment; offers drivers, driven equipment, and flow control systems, as well as power generation modules, waste heat/energy recovery, energy storage, modularized small and large liquefaction plants, carbon capture, and storage/use facilities solutions; and provides system upgrade and conversion solutions. It serves upstream, midstream, downstream, onshore and offshore, industrial, engineering, procurement, and construction companies. Its Digital Solutions segment provides operating technologies; condition monitoring, inspection technologies, measurement, sensing, and pipeline solutions; and software solutions. It serves through direct and indirect channels. The company has a strategic partnership with Abu Dhabi National Oil Company. The company is based in Houston, Texas. Baker Hughes, a GE company is a subsidiary of General Electric Company.

Freestone Resources Company Profile

Freestone Resources, Inc., an oil and gas technology development company, engages in the development and marketing of technologies and solvents for various sectors in the oil and gas industry. The company offers Petrozene solvent that is primarily used to dissolve paraffin buildup and used for pipelines, oil storage tanks, oil sludge build up, de-emulsification, and well treatment, as well as used as a corrosion inhibitor and as a catalyst in opening up formations thereby aiding in oil production. It also provides specialized off-the-road (OTR) tire repair services; offers disposal services for OTR tires; sells used OTR tires; and recycles OTR tires. Freestone Resources, Inc. is based in Ennis, Texas.

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