Baker Hughes Company (BKR) vs Halliburton Company (HAL)

Baker Hughes Company and Halliburton Company are both Oil & Gas Equipment & Services companies. Baker Hughes Company is the larger, with a market value of $56.7B against $27.1B — 2.1× the size. Halliburton Company trades at the lower P/E: 17.2× against 18.4×. Halliburton Company grew revenue faster over the last twelve months: 0.63% against 0.42%. Baker Hughes Company has the higher net margin (11.2% vs 7.16%) and the higher return on invested capital (12.2% vs 9.89%). Both pay a dividend; Baker Hughes Company yields more (2.83% vs 1.95%). Across the 22 metrics below, Baker Hughes Company leads on 11 and Halliburton Company on 11.

Valuation

Metric BKR HAL Oil & Gas Equipment & Services median
P/E 18.42 17.15 24.78
P/S 2.07 1.22 1.28
P/B 2.86 2.48 1.85
Price to free cash flow 17.08 14.10 15.03
EV/EBITDA 10.88 8.72 8.93
EV/Sales 2.09 1.45 1.40
Earnings yield 5.43% 5.83% 3.12%
Free cash flow yield 5.86% 7.09% 5.01%

Profitability

Metric BKR HAL Oil & Gas Equipment & Services median
Gross margin 23.57% 15.08% 23.27%
Operating margin 14.52% 11.44% 9.34%
Net margin 11.17% 7.16% 4.69%
Free cash flow margin 12.12% 8.68% 5.05%
Return on equity 16.32% 14.83% 4.92%
Return on assets 6.78% 6.26% 2.37%
Return on invested capital 12.21% 9.89% 4.32%

Growth

Metric BKR HAL Oil & Gas Equipment & Services median
Revenue growth (TTM) 0.42% 0.63% 6.08%
EPS growth (last fiscal year) (12.75%) (47.00%) —
Revenue growth, 5-year CAGR 6.02% 8.96% 10.60%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric BKR HAL Oil & Gas Equipment & Services median
Debt to equity 0.81 0.65 0.46
Current ratio 2.09 2.02 2.11
Net debt to EBITDA 0.52 1.46 0.76

Dividend

Metric BKR HAL Oil & Gas Equipment & Services median
Dividend yield 2.83% 1.95% 2.12%
Payout ratio 0.65 0.21 0.00

Size

Metric BKR HAL Oil & Gas Equipment & Services median
Market cap 56.69b 27.12b 1.81b

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