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 $54.0B against $30.7B — 1.8× the size. Tenaris S.A. trades at the lower P/E: 15.9× against 17.7×. 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; Baker Hughes Company yields more (1.65% vs 0.98%). Across the 22 metrics below, Tenaris S.A. leads on 15 and Baker Hughes Company on 7.

Valuation

Metric BKR TS Oil & Gas Equipment & Services median
P/E 17.74 15.88 22.50
P/S 1.99 2.49 1.17
P/B 2.75 1.74 1.82
Price to free cash flow 16.45 17.65 13.72
EV/EBITDA 10.48 9.63 8.68
EV/Sales 2.01 2.28 1.34
Earnings yield 5.64% 6.30% 3.94%
Free cash flow yield 6.08% 5.66% 5.66%

Profitability

Metric BKR TS Oil & Gas Equipment & Services median
Gross margin 23.57% 33.90% 23.26%
Operating margin 14.52% 18.51% 9.34%
Net margin 11.17% 15.88% 4.69%
Free cash flow margin 12.12% 14.11% 5.35%
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% (13.00%)
Revenue growth, 5-year CAGR 6.02% 18.41% 14.44%
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 2.07
Net debt to EBITDA 0.52 (0.89) 0.75

Dividend

Metric BKR TS Oil & Gas Equipment & Services median
Dividend yield 1.65% 0.98% 1.51%
Payout ratio 0.30 0.16 0.38

Size

Metric BKR TS Oil & Gas Equipment & Services median
Market cap 54.00b 30.69b 1.63b

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