Halliburton Company (HAL) vs SLB Limited (SLB)

Halliburton Company and SLB Limited are both Oil & Gas Equipment & Services companies. SLB Limited is the larger, with a market value of $76.3B against $27.1B — 2.8× the size. Halliburton Company trades at the lower P/E: 17.2× against 24.8×. SLB Limited grew revenue faster over the last twelve months: 2.50% against 0.63%. SLB Limited has the higher net margin (8.53% vs 7.16%) and the lower return on invested capital (8.18% vs 9.89%). Both pay a dividend; SLB Limited yields more (2.28% vs 1.95%). Across the 22 metrics below, Halliburton Company leads on 13 and SLB Limited on 9.

Valuation

Metric HAL SLB Oil & Gas Equipment & Services median
P/E 17.15 24.78 24.78
P/S 1.22 2.11 1.28
P/B 2.48 2.82 1.85
Price to free cash flow 14.10 17.02 15.03
EV/EBITDA 8.72 11.56 8.93
EV/Sales 1.45 2.36 1.40
Earnings yield 5.83% 4.04% 3.12%
Free cash flow yield 7.09% 5.88% 5.01%

Profitability

Metric HAL SLB Oil & Gas Equipment & Services median
Gross margin 15.08% 16.54% 23.27%
Operating margin 11.44% 12.35% 9.34%
Net margin 7.16% 8.53% 4.69%
Free cash flow margin 8.68% 12.41% 5.05%
Return on equity 14.83% 12.71% 4.92%
Return on assets 6.26% 5.95% 2.37%
Return on invested capital 9.89% 8.18% 4.32%

Growth

Metric HAL SLB Oil & Gas Equipment & Services median
Revenue growth (TTM) 0.63% 2.50% 6.08%
EPS growth (last fiscal year) (47.00%) (24.44%) —
Revenue growth, 5-year CAGR 8.96% 8.63% 10.60%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric HAL SLB Oil & Gas Equipment & Services median
Debt to equity 0.65 0.41 0.46
Current ratio 2.02 1.44 2.11
Net debt to EBITDA 1.46 0.74 0.76

Dividend

Metric HAL SLB Oil & Gas Equipment & Services median
Dividend yield 1.95% 2.28% 2.12%
Payout ratio 0.21 0.31 0.00

Size

Metric HAL SLB Oil & Gas Equipment & Services median
Market cap 27.12b 76.33b 1.81b

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