Weatherford International (OTCMKTS:WFTIF) and Baker Hughes (NYSE:BKR) are both oils/energy companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, institutional ownership and profitability.
Valuation & Earnings
This table compares Weatherford International and Baker Hughes’ top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Weatherford International | $5.74 billion | 0.00 | -$2.81 billion | ($0.59) | -0.03 |
| Baker Hughes | $22.88 billion | 1.12 | $195.00 million | $0.66 | 37.67 |
Baker Hughes has higher revenue and earnings than Weatherford International. Weatherford International is trading at a lower price-to-earnings ratio than Baker Hughes, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Weatherford International and Baker Hughes’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Weatherford International | -53.77% | N/A | -7.53% |
| Baker Hughes | 0.89% | 1.19% | 0.78% |
Volatility and Risk
Weatherford International has a beta of 2.81, indicating that its stock price is 181% more volatile than the S&P 500. Comparatively, Baker Hughes has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings and recommmendations for Weatherford International and Baker Hughes, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Weatherford International | 1 | 0 | 0 | 0 | 1.00 |
| Baker Hughes | 0 | 0 | 6 | 0 | 3.00 |
Baker Hughes has a consensus price target of $31.00, suggesting a potential upside of 24.70%. Given Baker Hughes’ stronger consensus rating and higher probable upside, analysts plainly believe Baker Hughes is more favorable than Weatherford International.
Insider and Institutional Ownership
85.7% of Weatherford International shares are held by institutional investors. Comparatively, 97.6% of Baker Hughes shares are held by institutional investors. 0.4% of Weatherford International shares are held by company insiders. Comparatively, 0.2% of Baker Hughes shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Summary
Baker Hughes beats Weatherford International on 12 of the 14 factors compared between the two stocks.
Weatherford International Company Profile
Weatherford International Plc provides equipment and services to the oil and natural gas exploration and production industry. It operates through two segments: Western Hemisphere and Eastern Hemispher. The company products and services are Drilling and Evaluation, Production, Completions, and Well Construction. Weatherford International was founded in 1941 and is headquartered in Baar, Switzerland.
Baker Hughes Company Profile
Baker Hughes Company provides integrated oilfield products, services, and digital solutions worldwide. Its Oilfield Services segment offers drilling, wireline, evaluation, completion, production, and intervention services; and drilling and completions fluids, completions tools and systems, wellbore intervention tools and services, artificial lift systems, pressure pumping systems, and oilfield and industrial chemicals for integrated oil and natural gas and oilfield service companies. The company’s Oilfield Equipment segment designs and manufactures products and services, including pressure control equipment and services, subsea production systems and services, drilling equipment, and flexible pipeline systems; and onshore and offshore drilling and production systems, and equipment for floating production platforms, as well as provides a range of services related to onshore and offshore drilling activities. Its Turbomachinery & Process Solutions segment provides equipment and related services for mechanical-drive, compression, and power-generation applications across the oil and gas industry. Its product portfolio includes drivers, compressors, and turnkey solutions; and pumps, valves, and compressed natural gas and small-scale liquefied natural gas solutions. This segment serves upstream, midstream, onshore and offshore, industrial, engineering, procurement, and construction companies. The company’s Digital Solutions segment provides sensor-based measurement, non-destructive testing and inspection, turbine, generator and plant controls, and condition monitoring, as well as pipeline integrity solutions for a range of industries, including oil and gas, power generation, aerospace, metals, and transportation. It serves through direct and indirect channels. The company was formerly known as Baker Hughes, a GE company and changed its name to Baker Hughes Company in October 2019. Baker Hughes Company is based in Houston, Texas.
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