Geospace Technologies (NASDAQ: GEOS) and Halliburton (NYSE:HAL) are both energy companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, institutional ownership, valuation and dividends.
Risk and Volatility
Geospace Technologies has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500. Comparatively, Halliburton has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500.
This table compares Geospace Technologies and Halliburton’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Geospace Technologies||$73.72 million||2.83||-$56.79 million||($4.32)||-3.56|
|Halliburton||$15.89 billion||2.93||-$5.76 billion||$0.24||222.21|
Geospace Technologies has higher earnings, but lower revenue than Halliburton. Geospace Technologies is trading at a lower price-to-earnings ratio than Halliburton, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings for Geospace Technologies and Halliburton, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Halliburton has a consensus price target of $56.21, suggesting a potential upside of 5.40%. Given Halliburton’s higher possible upside, analysts clearly believe Halliburton is more favorable than Geospace Technologies.
Insider and Institutional Ownership
76.5% of Geospace Technologies shares are owned by institutional investors. Comparatively, 79.8% of Halliburton shares are owned by institutional investors. 3.9% of Geospace Technologies shares are owned by insiders. Comparatively, 0.5% of Halliburton shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This table compares Geospace Technologies and Halliburton’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Halliburton pays an annual dividend of $0.72 per share and has a dividend yield of 1.4%. Geospace Technologies does not pay a dividend. Halliburton pays out 300.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Halliburton beats Geospace Technologies on 11 of the 15 factors compared between the two stocks.
About Geospace Technologies
Geospace Technologies Corporation designs and manufactures instruments and equipment used by the oil and gas industry to acquire seismic data in order to locate, characterize and monitor hydrocarbon producing reservoirs. The Company also designs and manufactures non-seismic products, including industrial products, offshore cables and imaging equipment. The Company operates through two segments: Seismic and Non-Seismic. The Company’s Seismic product segments include traditional exploration products, wireless exploration products and reservoir products. Its seismic product lines consist of land and marine nodal data acquisition systems, permanent land and seabed reservoir monitoring products and services, geophones and geophone strings, hydrophones, leader wire, connectors, telemetry cables, marine streamer retrieval and steering devices and various other products. The Company’s Non-Seismic product segments include imaging and industrial products.
Halliburton Company provides services and products to the upstream oil and natural gas industry throughout the lifecycle of the reservoir, from locating hydrocarbons and managing geological data, to drilling and formation evaluation, well construction and completion, and optimizing production throughout the life of the field. It operates through two segments: the Completion and Production segment, and the Drilling and Evaluation segment. The Completion and Production segment delivers cementing, stimulation, intervention, pressure control, specialty chemicals, artificial lift and completion services. The Drilling and Evaluation segment provides field and reservoir modeling, drilling, evaluation and wellbore placement solutions that enable customers to model, measure, drill and optimize their well construction activities. It serves national and independent oil and natural gas companies. As of December 31, 2016, it had conducted business in approximately 70 countries around the world.
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