Analyzing Flotek Industries (FTK) and Schlumberger N.V. (SLB)

Flotek Industries (NYSE: FTK) and Schlumberger N.V. (NYSE:SLB) are both oils/energy companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, earnings, valuation, analyst recommendations, institutional ownership and profitability.

Insider & Institutional Ownership

98.2% of Flotek Industries shares are owned by institutional investors. Comparatively, 79.7% of Schlumberger N.V. shares are owned by institutional investors. 5.5% of Flotek Industries shares are owned by company insiders. Comparatively, 0.4% of Schlumberger N.V. shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Flotek Industries and Schlumberger N.V.’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Flotek Industries $300.07 million 1.07 $2.51 million ($0.56) -9.96
Schlumberger N.V. $28.48 billion 3.06 $6.27 billion $0.13 484.88

Schlumberger N.V. has higher revenue and earnings than Flotek Industries. Flotek Industries is trading at a lower price-to-earnings ratio than Schlumberger N.V., indicating that it is currently the more affordable of the two stocks.

Dividends

Schlumberger N.V. pays an annual dividend of $2.00 per share and has a dividend yield of 3.2%. Flotek Industries does not pay a dividend. Schlumberger N.V. pays out 1,538.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Schlumberger N.V. has increased its dividend for 6 consecutive years.

Risk and Volatility

Flotek Industries has a beta of 1.76, indicating that its stock price is 76% more volatile than the S&P 500. Comparatively, Schlumberger N.V. has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Flotek Industries and Schlumberger N.V., as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Flotek Industries 0 0 1 0 3.00
Schlumberger N.V. 0 8 17 1 2.73

Schlumberger N.V. has a consensus price target of $85.82, suggesting a potential upside of 36.15%. Given Schlumberger N.V.’s higher probable upside, analysts plainly believe Schlumberger N.V. is more favorable than Flotek Industries.

Profitability

This table compares Flotek Industries and Schlumberger N.V.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Flotek Industries -10.49% -2.07% -1.57%
Schlumberger N.V. 0.62% 3.80% 2.02%

Summary

Schlumberger N.V. beats Flotek Industries on 12 of the 17 factors compared between the two stocks.

Flotek Industries Company Profile

Flotek Industries, Inc. is a technology-driven company. The Company develops and supplies chemistry and services to the oil and gas industries, and compounds to companies that make cleaning products, cosmetics, food and beverages, and other products that are sold in consumer and industrial markets. The Company operates through two segments: Energy Chemistry Technologies (ECT), and Consumer and Industrial Chemistry Technologies (CICT). The ECT segment designs, develops, manufactures, packages and markets chemistries for use in oil and gas well drilling, cementing, completion and stimulation activities. Its ECT segment’s services include Reservoir Characterization, Polymer Conformance and Logistics Management. The CICT segment sources citrus oil domestically and internationally, and processor of citrus oils in the world. The CICT segment designs, develops and manufactures products that are sold to companies in the flavor and fragrance industries and specialty chemical industry.

Schlumberger N.V. Company Profile

Schlumberger N.V. provides technology for reservoir characterization, drilling, production and processing to the oil and gas industry. The Company’s segments include Reservoir Characterization Group, Drilling Group, Production Group and Cameron Group. The Reservoir Characterization Group consists of the principal technologies involved in finding and defining hydrocarbon resources. The Drilling Group consists of the principal technologies involved in the drilling and positioning of oil and gas wells. The Production Group consists of the principal technologies involved in the lifetime production of oil and gas reservoirs and includes Well Services, Completions, Artificial Lift, Integrated Production Services (IPS) and Schlumberger Production Management (SPM). The Cameron Group consists of the principal technologies involved in pressure and flow control for drilling and intervention rigs, oil and gas wells and production facilities.

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