Baker Hughes Company (BKR) vs Tenaris S.A. (TS)

Baker Hughes Company and Tenaris S.A. are both Oil & Gas Equipment & Services companies. Baker Hughes Company is the larger, with a market value of $56.7B against $30.0B — 1.9× the size. Tenaris S.A. trades at the lower P/E: 14.8× against 18.4×. Tenaris S.A. grew revenue faster over the last twelve months: 2.31% against 0.42%. Tenaris S.A. has the higher net margin (15.9% vs 11.2%) and the lower return on invested capital (9.46% vs 12.2%). Both pay a dividend; Tenaris S.A. yields more (3.64% vs 2.83%). Across the 22 metrics below, Tenaris S.A. leads on 18 and Baker Hughes Company on 4.

Valuation

Metric BKR TS Oil & Gas Equipment & Services median
P/E 18.42 14.83 24.78
P/S 2.07 2.33 1.28
P/B 2.86 1.63 1.85
Price to free cash flow 17.08 16.49 15.03
EV/EBITDA 10.88 8.93 8.93
EV/Sales 2.09 2.12 1.40
Earnings yield 5.43% 6.74% 3.12%
Free cash flow yield 5.86% 6.07% 5.01%

Profitability

Metric BKR TS Oil & Gas Equipment & Services median
Gross margin 23.57% 33.90% 23.27%
Operating margin 14.52% 18.51% 9.34%
Net margin 11.17% 15.88% 4.69%
Free cash flow margin 12.12% 14.11% 5.05%
Return on equity 16.32% 11.24% 4.92%
Return on assets 6.78% 9.39% 2.37%
Return on invested capital 12.21% 9.46% 4.32%

Growth

Metric BKR TS Oil & Gas Equipment & Services median
Revenue growth (TTM) 0.42% 2.31% 6.08%
EPS growth (last fiscal year) (12.75%) 1.39% —
Revenue growth, 5-year CAGR 6.02% 18.41% 10.60%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric BKR TS Oil & Gas Equipment & Services median
Debt to equity 0.81 0.02 0.46
Current ratio 2.09 4.07 2.11
Net debt to EBITDA 0.52 (0.89) 0.76

Dividend

Metric BKR TS Oil & Gas Equipment & Services median
Dividend yield 2.83% 3.64% 2.12%
Payout ratio 0.65 0.16 0.00

Size

Metric BKR TS Oil & Gas Equipment & Services median
Market cap 56.69b 29.95b 1.81b

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