Baker Hughes (NYSE:BKR) and Baker Hughes A GE (NYSE:BHGE) are both large-cap oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, dividends, profitability, risk and institutional ownership.
Earnings and Valuation
This table compares Baker Hughes and Baker Hughes A GE’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Baker Hughes | $22.88 billion | 1.01 | $195.00 million | $0.66 | 33.97 |
| Baker Hughes A GE | $22.88 billion | 1.02 | $195.00 million | $0.66 | 33.97 |
Volatility & Risk
Baker Hughes has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500. Comparatively, Baker Hughes A GE has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Baker Hughes and Baker Hughes A GE, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Baker Hughes | 0 | 0 | 3 | 0 | 3.00 |
| Baker Hughes A GE | 0 | 1 | 10 | 1 | 3.00 |
Baker Hughes presently has a consensus target price of $30.00, suggesting a potential upside of 33.81%. Baker Hughes A GE has a consensus target price of $31.55, suggesting a potential upside of 40.70%. Given Baker Hughes A GE’s higher possible upside, analysts clearly believe Baker Hughes A GE is more favorable than Baker Hughes.
Institutional & Insider Ownership
97.5% of Baker Hughes shares are held by institutional investors. Comparatively, 48.4% of Baker Hughes A GE shares are held by institutional investors. 2.7% of Baker Hughes shares are held by company insiders. Comparatively, 0.2% of Baker Hughes A GE shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Profitability
This table compares Baker Hughes and Baker Hughes A GE’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Baker Hughes | 0.89% | 1.19% | 0.78% |
| Baker Hughes A GE | 0.71% | 1.07% | 0.71% |
Dividends
Baker Hughes pays an annual dividend of $0.72 per share and has a dividend yield of 3.2%. Baker Hughes A GE pays an annual dividend of $0.72 per share and has a dividend yield of 3.2%. Baker Hughes pays out 109.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Baker Hughes A GE pays out 109.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Summary
Baker Hughes beats Baker Hughes A GE on 6 of the 10 factors compared between the two stocks.
About Baker Hughes
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.
About Baker Hughes A GE
Baker Hughes, a GE 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, as well as products and services to serve the downstream segments of 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 is based in Houston, Texas. Baker Hughes, a GE company is a subsidiary of General Electric Company.
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