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 $45.9B against $26.4B — 1.7× the size. Halliburton Company trades at the lower P/E: 13.4× against 15.7×. Baker Hughes Company grew revenue faster over the last twelve months: 3.71% against 1.53%. Baker Hughes Company has the higher net margin (10.1% vs 8.90%) and the lower return on invested capital (6.92% vs 10.7%). Both pay a dividend; Halliburton Company yields more (2.12% vs 1.49%). Across the 22 metrics below, Halliburton Company leads on 12 and Baker Hughes Company on 10.

Valuation

Metric BKR HAL Oil & Gas Equipment & Services median
P/E 15.72 13.41 20.53
P/S 1.60 1.19 1.08
P/B 2.24 2.39 1.64
Price to free cash flow 13.41 14.62 12.36
EV/EBITDA 11.21 7.98 8.00
EV/Sales 2.09 1.42 1.29
Earnings yield 6.36% 7.46% 3.88%
Free cash flow yield 7.46% 6.84% 5.18%

Profitability

Metric BKR HAL Oil & Gas Equipment & Services median
Gross margin 23.53% 14.94% 22.88%
Operating margin 13.38% 12.58% 7.44%
Net margin 10.08% 8.90% 4.12%
Free cash flow margin 11.93% 8.11% 3.10%
Return on equity 14.90% 18.69% 5.46%
Return on assets 5.90% 7.81% 2.63%
Return on invested capital 6.92% 10.72% 4.26%

Growth

Metric BKR HAL Oil & Gas Equipment & Services median
Revenue growth (TTM) 3.71% 1.53% 4.65%
EPS growth (last fiscal year) (12.75%) (47.00%) (13.00%)
Revenue growth, 5-year CAGR 6.02% 8.96% 12.57%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric BKR HAL Oil & Gas Equipment & Services median
Debt to equity 0.89 0.64 0.44
Current ratio 1.24 2.02 2.04
Net debt to EBITDA 0.52 1.46 1.12

Dividend

Metric BKR HAL Oil & Gas Equipment & Services median
Dividend yield 1.49% 2.12% 1.49%
Payout ratio 0.24 0.28 0.36

Size

Metric BKR HAL Oil & Gas Equipment & Services median
Market cap 45.88b 26.40b 1.44b

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