Baker Hughes Company (BKR) vs NOV Inc. (NOV)

Baker Hughes Company and NOV Inc. are both Oil & Gas Equipment & Services companies. Baker Hughes Company is the larger, with a market value of $45.9B against $6.2B — 7.4× the size. Baker Hughes Company trades at the lower P/E: 15.7× against 41.9×. Baker Hughes Company grew revenue faster over the last twelve months: 3.71% against −0.98%. Baker Hughes Company has the higher net margin (10.1% vs 1.65%) and the higher return on invested capital (6.92% vs 4.26%). Both pay a dividend; NOV Inc. yields more (1.98% vs 1.49%). Across the 22 metrics below, Baker Hughes Company leads on 13 and NOV Inc. on 9.

Valuation

Metric BKR NOV Oil & Gas Equipment & Services median
P/E 15.72 41.94 20.53
P/S 1.60 0.72 1.08
P/B 2.24 0.99 1.64
Price to free cash flow 13.41 19.29 12.36
EV/EBITDA 11.21 7.54 8.00
EV/Sales 2.09 0.79 1.29
Earnings yield 6.36% 2.38% 3.88%
Free cash flow yield 7.46% 5.18% 5.18%

Profitability

Metric BKR NOV Oil & Gas Equipment & Services median
Gross margin 23.53% 20.73% 22.88%
Operating margin 13.38% 5.46% 7.44%
Net margin 10.08% 1.65% 4.12%
Free cash flow margin 11.93% 3.72% 3.10%
Return on equity 14.90% 2.26% 5.46%
Return on assets 5.90% 1.27% 2.63%
Return on invested capital 6.92% 4.26% 4.26%

Growth

Metric BKR NOV Oil & Gas Equipment & Services median
Revenue growth (TTM) 3.71% (0.98%) 4.65%
EPS growth (last fiscal year) (12.75%) (75.63%) (13.00%)
Revenue growth, 5-year CAGR 6.02% 7.50% 12.57%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric BKR NOV Oil & Gas Equipment & Services median
Debt to equity 0.89 0.27 0.44
Current ratio 1.24 2.51 2.04
Net debt to EBITDA 0.52 0.18 1.12

Dividend

Metric BKR NOV Oil & Gas Equipment & Services median
Dividend yield 1.49% 1.98% 1.49%
Payout ratio 0.24 0.83 0.36

Size

Metric BKR NOV Oil & Gas Equipment & Services median
Market cap 45.88b 6.20b 1.44b

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