Contrasting Schlumberger N.V. (SLB) & Flotek Industries (FTK)
Schlumberger N.V. (NYSE: SLB) and Flotek Industries (NYSE:FTK) are both oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, risk, dividends and analyst recommendations.
This table compares Schlumberger N.V. and Flotek Industries’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
79.1% of Schlumberger N.V. shares are held by institutional investors. 0.4% of Schlumberger N.V. shares are held by company insiders. Comparatively, 5.5% of Flotek Industries shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Schlumberger N.V. and Flotek Industries’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Schlumberger N.V.||$28.48 billion||3.10||$6.27 billion||$0.13||491.04|
|Flotek Industries||$300.07 million||1.14||$2.51 million||($0.56)||-10.62|
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.
This is a summary of current recommendations for Schlumberger N.V. and Flotek Industries, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Schlumberger N.V. presently has a consensus price target of $86.04, indicating a potential upside of 34.80%. Given Schlumberger N.V.’s higher probable upside, equities research analysts clearly believe Schlumberger N.V. is more favorable than Flotek Industries.
Schlumberger N.V. pays an annual dividend of $2.00 per share and has a dividend yield of 3.1%. 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. Flotek Industries has raised its dividend for 6 consecutive years.
Volatility and Risk
Schlumberger N.V. has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500. Comparatively, Flotek Industries has a beta of 1.76, suggesting that its share price is 76% more volatile than the S&P 500.
Schlumberger N.V. beats Flotek Industries on 12 of the 17 factors compared between the two stocks.
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.
About Flotek Industries
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.
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