Baker Hughes (NYSE: BKR) is one of 16 public companies in the “Oil & gas field machinery” industry, but how does it contrast to its competitors? We will compare Baker Hughes to similar businesses based on the strength of its institutional ownership, analyst recommendations, risk, profitability, earnings, dividends and valuation.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Baker Hughes and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Baker Hughes 0 0 1 0 3.00
Baker Hughes Competitors 226 1147 1092 28 2.37

Baker Hughes currently has a consensus target price of $28.00, suggesting a potential upside of 25.84%. As a group, “Oil & gas field machinery” companies have a potential upside of 23.90%. Given Baker Hughes’ stronger consensus rating and higher probable upside, analysts clearly believe Baker Hughes is more favorable than its competitors.

Profitability

This table compares Baker Hughes and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Baker Hughes 0.89% 1.19% 0.78%
Baker Hughes Competitors -15.07% 4.01% 2.48%

Valuation & Earnings

This table compares Baker Hughes and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Baker Hughes $22.88 billion $195.00 million 33.71
Baker Hughes Competitors $5.35 billion -$468.15 million -24.82

Baker Hughes has higher revenue and earnings than its competitors. Baker Hughes is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Dividends

Baker Hughes pays an annual dividend of $0.72 per share and has a dividend yield of 3.2%. Baker Hughes pays out 109.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Oil & gas field machinery” companies pay a dividend yield of 2.5% and pay out 69.6% of their earnings in the form of a dividend.

Insider & Institutional Ownership

48.4% of Baker Hughes shares are held by institutional investors. Comparatively, 69.1% of shares of all “Oil & gas field machinery” companies are held by institutional investors. 0.2% of Baker Hughes shares are held by insiders. Comparatively, 14.1% of shares of all “Oil & gas field machinery” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Baker Hughes has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500. Comparatively, Baker Hughes’ competitors have a beta of 1.29, indicating that their average stock price is 29% more volatile than the S&P 500.

Summary

Baker Hughes beats its competitors on 8 of the 15 factors compared.

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.

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