Baker Hughes Company (BKR) vs Weatherford International PLC (WFRD)

Baker Hughes Company and Weatherford International PLC are both Oil & Gas Equipment & Services companies. Baker Hughes Company is the larger, with a market value of $56.7B against $6.0B — 9.4× the size. Weatherford International PLC trades at the lower P/E: 16.7× against 18.4×. Baker Hughes Company grew revenue faster over the last twelve months: 0.42% against −7.17%. Baker Hughes Company has the higher net margin (11.2% vs 7.66%) and the lower return on invested capital (12.2% vs 17.8%). Across the 21 metrics below, Weatherford International PLC leads on 14 and Baker Hughes Company on 7.

Valuation

Metric BKR WFRD Oil & Gas Equipment & Services median
P/E 18.42 16.68 24.78
P/S 2.07 1.28 1.28
P/B 2.86 3.42 1.85
Price to free cash flow 17.08 11.50 15.03
EV/EBITDA 10.88 7.27 8.93
EV/Sales 2.09 1.35 1.40
Earnings yield 5.43% 5.99% 3.12%
Free cash flow yield 5.86% 8.70% 5.01%

Profitability

Metric BKR WFRD Oil & Gas Equipment & Services median
Gross margin 23.57% 30.51% 23.27%
Operating margin 14.52% 12.70% 9.34%
Net margin 11.17% 7.66% 4.69%
Free cash flow margin 12.12% 11.41% 5.05%
Return on equity 16.32% 22.13% 4.92%
Return on assets 6.78% 7.15% 2.37%
Return on invested capital 12.21% 17.79% 4.32%

Growth

Metric BKR WFRD Oil & Gas Equipment & Services median
Revenue growth (TTM) 0.42% (7.17%) 6.08%
EPS growth (last fiscal year) (12.75%) (12.15%) —
Revenue growth, 5-year CAGR 6.02% 5.94% 10.60%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric BKR WFRD Oil & Gas Equipment & Services median
Debt to equity 0.81 0.83 0.46
Current ratio 2.09 2.34 2.11
Net debt to EBITDA 0.52 0.43 0.76

Dividend

Metric BKR WFRD Oil & Gas Equipment & Services median
Dividend yield 2.83% — 2.12%
Payout ratio 0.65 0.00 0.00

Size

Metric BKR WFRD Oil & Gas Equipment & Services median
Market cap 56.69b 6.04b 1.81b

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