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 $45.9B against $28.5B — 1.6× the size. Tenaris S.A. trades at the lower P/E: 15.1× against 15.7×. Baker Hughes Company grew revenue faster over the last twelve months: 3.71% against 2.31%. Tenaris S.A. has the higher net margin (15.9% vs 10.1%) and the higher return on invested capital (9.46% vs 6.92%). Both pay a dividend; Baker Hughes Company yields more (1.49% vs 1.02%). 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 15.72 15.14 20.53
P/S 1.60 2.37 1.08
P/B 2.24 1.66 1.64
Price to free cash flow 13.41 16.83 12.36
EV/EBITDA 11.21 9.14 8.00
EV/Sales 2.09 2.17 1.29
Earnings yield 6.36% 6.61% 3.88%
Free cash flow yield 7.46% 5.94% 5.18%

Profitability

Metric BKR TS Oil & Gas Equipment & Services median
Gross margin 23.53% 33.90% 22.88%
Operating margin 13.38% 18.51% 7.44%
Net margin 10.08% 15.88% 4.12%
Free cash flow margin 11.93% 14.11% 3.10%
Return on equity 14.90% 11.24% 5.46%
Return on assets 5.90% 9.39% 2.63%
Return on invested capital 6.92% 9.46% 4.26%

Growth

Metric BKR TS Oil & Gas Equipment & Services median
Revenue growth (TTM) 3.71% 2.31% 4.65%
EPS growth (last fiscal year) (12.75%) 1.39% (13.00%)
Revenue growth, 5-year CAGR 6.02% 18.41% 12.57%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric BKR TS Oil & Gas Equipment & Services median
Debt to equity 0.89 0.02 0.44
Current ratio 1.24 4.07 2.04
Net debt to EBITDA 0.52 (0.89) 1.12

Dividend

Metric BKR TS Oil & Gas Equipment & Services median
Dividend yield 1.49% 1.02% 1.49%
Payout ratio 0.24 0.16 0.36

Size

Metric BKR TS Oil & Gas Equipment & Services median
Market cap 45.88b 28.54b 1.44b

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