Baker Hughes Company (BKR) vs SLB Limited (SLB)

Baker Hughes Company and SLB Limited are both Oil & Gas Equipment & Services companies. SLB Limited is the larger, with a market value of $76.3B against $56.7B — 1.3× the size. Baker Hughes Company trades at the lower P/E: 18.4× against 24.8×. SLB Limited grew revenue faster over the last twelve months: 2.50% against 0.42%. Baker Hughes Company has the higher net margin (11.2% vs 8.53%) and the higher return on invested capital (12.2% vs 8.18%). Both pay a dividend; Baker Hughes Company yields more (2.83% vs 2.28%). Across the 22 metrics below, Baker Hughes Company leads on 15 and SLB Limited on 7.

Valuation

Metric BKR SLB Oil & Gas Equipment & Services median
P/E 18.42 24.78 24.78
P/S 2.07 2.11 1.28
P/B 2.86 2.82 1.85
Price to free cash flow 17.08 17.02 15.03
EV/EBITDA 10.88 11.56 8.93
EV/Sales 2.09 2.36 1.40
Earnings yield 5.43% 4.04% 3.12%
Free cash flow yield 5.86% 5.88% 5.01%

Profitability

Metric BKR SLB Oil & Gas Equipment & Services median
Gross margin 23.57% 16.54% 23.27%
Operating margin 14.52% 12.35% 9.34%
Net margin 11.17% 8.53% 4.69%
Free cash flow margin 12.12% 12.41% 5.05%
Return on equity 16.32% 12.71% 4.92%
Return on assets 6.78% 5.95% 2.37%
Return on invested capital 12.21% 8.18% 4.32%

Growth

Metric BKR SLB Oil & Gas Equipment & Services median
Revenue growth (TTM) 0.42% 2.50% 6.08%
EPS growth (last fiscal year) (12.75%) (24.44%) —
Revenue growth, 5-year CAGR 6.02% 8.63% 10.60%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric BKR SLB Oil & Gas Equipment & Services median
Debt to equity 0.81 0.41 0.46
Current ratio 2.09 1.44 2.11
Net debt to EBITDA 0.52 0.74 0.76

Dividend

Metric BKR SLB Oil & Gas Equipment & Services median
Dividend yield 2.83% 2.28% 2.12%
Payout ratio 0.65 0.31 0.00

Size

Metric BKR SLB Oil & Gas Equipment & Services median
Market cap 56.69b 76.33b 1.81b

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