Dril-Quip (NYSE: DRQ) and Baker Hughes, a GE (NYSE:BHGE) are both oils/energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, risk, valuation, profitability, dividends, analyst recommendations and institutional ownership.
Baker Hughes, a GE pays an annual dividend of $0.72 per share and has a dividend yield of 2.1%. Dril-Quip does not pay a dividend. Baker Hughes, a GE pays out 138.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This table compares Dril-Quip and Baker Hughes, a GE’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Dril-Quip||$455.47 million||4.08||-$100.63 million||$0.26||187.50|
|Baker Hughes, a GE||$17.26 billion||0.84||$36.00 million||$0.52||66.73|
Baker Hughes, a GE has higher revenue and earnings than Dril-Quip. Baker Hughes, a GE is trading at a lower price-to-earnings ratio than Dril-Quip, indicating that it is currently the more affordable of the two stocks.
This table compares Dril-Quip 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, a GE||-1.28%||0.25%||0.17%|
Institutional and Insider Ownership
94.8% of Baker Hughes, a GE shares are owned by institutional investors. 1.1% of Dril-Quip shares are owned by insiders. Comparatively, 0.2% of Baker Hughes, a GE shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Risk and Volatility
Dril-Quip has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500. Comparatively, Baker Hughes, a GE has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500.
This is a breakdown of recent recommendations and price targets for Dril-Quip and Baker Hughes, a GE, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Baker Hughes, a GE||0||14||10||0||2.42|
Dril-Quip presently has a consensus price target of $47.14, suggesting a potential downside of 3.30%. Baker Hughes, a GE has a consensus price target of $37.25, suggesting a potential upside of 7.35%. Given Baker Hughes, a GE’s stronger consensus rating and higher probable upside, analysts clearly believe Baker Hughes, a GE is more favorable than Dril-Quip.
Baker Hughes, a GE beats Dril-Quip on 11 of the 16 factors compared between the two stocks.
Dril-Quip Company Profile
Dril-Quip, Inc., together with its subsidiaries, designs, manufactures, sells, and services onshore and offshore drilling and production equipment for use in deepwater, harsh environment, and severe service applications worldwide. It operates through three segments: Western Hemisphere, Eastern Hemisphere, and Asia-Pacific. The company's principal products include subsea and surface wellheads, subsea and surface production trees, subsea control systems and manifolds, mudline hanger systems, specialty connectors and associated pipes, drilling and production riser systems, liner hangers, wellhead connectors, diverters, and safety valves, as well as consumable downhole products. It also provides technical advisory services, and rework and reconditioning services, as well as rental and purchase of running tools for use in the installation and retrieval of the its products. The company's products are used to explore for oil and gas from offshore drilling rigs, such as floating rigs and jack-up rigs; and for drilling and production of oil and gas wells on offshore platforms, tension leg platforms, and Spars, as well as moored vessels, such as floating production, storage, and offloading monohull moored vessels. It sells its products directly through its sales personnel, independent sales agents, and representatives to integrated, independent, and foreign national oil and gas companies, as well as drilling contractors, and engineering and construction companies. Dril-Quip, Inc. was founded in 1981 and is headquartered in Houston, Texas.
Baker Hughes, a GE Company Profile
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 for onshore and offshore operations. Its Oilfield Equipment segment designs and manufactures onshore and offshore drilling and production systems; equipment for floating production platforms; deepwater drilling equipment; subsea production systems; and flexible pipe products for operating environments. It also provides installation and decommissioning solutions; various services and solutions related to onshore and offshore drilling activities; and services for installation, technical support, and well access to oil and gas field developers, and drilling and oil companies. Its Turbomachinery & Process Solutions segment designs, manufactures, maintains, and upgrades rotating equipment; offers drivers, driven equipment, and flow control systems, as well as turnkey solutions, such as power generation modules, waste heat/energy recovery, energy storage, modularized small and large liquefaction plants, carbon capture, and storage/use facilities solutions; and provides system upgrades and conversion solutions. This segment serves upstream, midstream, downstream, onshore and offshore, industrial, engineering, procurement, and construction companies. Its Digital Solutions segment provides operating technologies; condition monitoring, inspection technologies, measurement, sensing, and pipeline solutions; and software solutions. 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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