Frank’s International N.V. (NYSE: FI) and Schlumberger N.V. (NYSE:SLB) are both oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitabiliy, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
Frank’s International N.V. -36.25% -8.41% -7.00%
Schlumberger N.V. 0.62% 3.80% 2.02%

Insider and Institutional Ownership

30.1% of Frank’s International N.V. shares are owned by institutional investors. Comparatively, 79.1% of Schlumberger N.V. shares are owned by institutional investors. 77.9% of Frank’s International N.V. shares are owned by insiders. Comparatively, 0.4% of Schlumberger N.V. shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

Frank’s International N.V. pays an annual dividend of $0.30 per share and has a dividend yield of 4.2%. Schlumberger N.V. pays an annual dividend of $2.00 per share and has a dividend yield of 3.1%. Frank’s International N.V. pays out -36.1% of its earnings in the form of 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 raised its dividend for 6 consecutive years. Frank’s International N.V. is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

Frank’s International N.V. has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500. Comparatively, Schlumberger N.V. has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500.

Earnings and Valuation

This table compares Frank’s International N.V. and Schlumberger N.V.’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Frank’s International N.V. $444.78 million 3.54 -$33.97 million ($0.83) -8.51
Schlumberger N.V. $28.48 billion 3.18 $6.27 billion $0.13 503.81

Schlumberger N.V. has higher revenue and earnings than Frank’s International N.V.. Frank’s International N.V. 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.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Frank’s International N.V. and Schlumberger N.V., as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Frank’s International N.V. 4 10 0 0 1.71
Schlumberger N.V. 0 8 18 1 2.74

Frank’s International N.V. currently has a consensus price target of $9.59, suggesting a potential upside of 35.85%. Schlumberger N.V. has a consensus price target of $86.04, suggesting a potential upside of 31.38%. Given Frank’s International N.V.’s higher probable upside, equities research analysts plainly believe Frank’s International N.V. is more favorable than Schlumberger N.V..

Summary

Schlumberger N.V. beats Frank’s International N.V. on 11 of the 17 factors compared between the two stocks.

About Frank’s International N.V.

Frank’s International N.V. (FINV) is a provider of engineered tubular services, tubular fabrication and specialty well construction and well intervention solutions to the oil and gas industry. The Company operates through four business segments: International Services, U. S. Services, Tubular Sales and Blackhawk. As of December 31, 2016, the International Services segment provided tubular services in international offshore markets and in several onshore international regions in approximately 60 countries on six continents. The U.S. Services segment provides tubular services. The Blackhawk segment provides well construction and well intervention rental equipment, services and products, in addition to the cementing tool expertise, in the United States and Mexican Gulf of Mexico, onshore United States and other select international locations.

About Schlumberger N.V.

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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