Halliburton (NYSE:HAL) & Oceaneering International (OII) Financial Comparison
Halliburton (NYSE: HAL) and Oceaneering International (NYSE:OII) are both mid-cap oils/energy companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, profitabiliy, valuation, dividends and risk.
Volatility & Risk
Halliburton has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500. Comparatively, Oceaneering International has a beta of 1.64, suggesting that its stock price is 64% more volatile than the S&P 500.
This table compares Halliburton and Oceaneering International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
79.7% of Halliburton shares are owned by institutional investors. Comparatively, 98.8% of Oceaneering International shares are owned by institutional investors. 0.5% of Halliburton shares are owned by company insiders. Comparatively, 0.9% of Oceaneering International shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This is a summary of current ratings and target prices for Halliburton and Oceaneering International, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Halliburton currently has a consensus target price of $59.27, suggesting a potential upside of 33.55%. Oceaneering International has a consensus target price of $28.44, suggesting a potential upside of 16.34%. Given Halliburton’s stronger consensus rating and higher possible upside, research analysts clearly believe Halliburton is more favorable than Oceaneering International.
Halliburton pays an annual dividend of $0.72 per share and has a dividend yield of 1.6%. Oceaneering International pays an annual dividend of $0.60 per share and has a dividend yield of 2.5%. Halliburton pays out -18.3% of its earnings in the form of a dividend. Oceaneering International pays out -750.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Oceaneering International is clearly the better dividend stock, given its higher yield and lower payout ratio.
Valuation and Earnings
This table compares Halliburton and Oceaneering International’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Halliburton||$15.97 billion||2.41||$2.17 billion||($3.93)||-11.29|
|Oceaneering International||$2.11 billion||1.14||$271.74 million||($0.08)||-305.63|
Halliburton has higher revenue and earnings than Oceaneering International. Oceaneering International is trading at a lower price-to-earnings ratio than Halliburton, indicating that it is currently the more affordable of the two stocks.
Oceaneering International beats Halliburton on 9 of the 15 factors compared between the two stocks.
Halliburton Company Profile
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.
Oceaneering International Company Profile
Oceaneering International, Inc. is an oilfield provider of engineered services and products, primarily to the offshore oil and gas industry, with a focus on deepwater applications. The Company’s business segments are contained within two businesses: services and products provided to the oil and gas industry (Oilfield) and all other services and products (Advanced Technologies). Its four business segments within the Oilfield business are Remotely Operated Vehicles (ROVs), Subsea Products, Subsea Projects and Asset Integrity. The services and products it provides to the oil and gas industry include remotely operated vehicles, specialty subsea hardware, engineering and project management, subsea intervention services, including manned diving, survey and positioning services and asset integrity and nondestructive testing services. The Company serves the defense, aerospace and commercial theme park industries.
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