Head-To-Head Comparison: Schlumberger (SLB) versus Cameron International (CAM)
Schlumberger (NYSE: SLB) and Cameron International (NYSE:CAM) are both large-cap energy companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, dividends, institutional ownership, risk, earnings, profitability and analyst recommendations.
This table compares Schlumberger and Cameron International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current recommendations for Schlumberger and Cameron International, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Schlumberger currently has a consensus price target of $78.63, suggesting a potential upside of 0.84%. Given Schlumberger’s higher probable upside, analysts plainly believe Schlumberger is more favorable than Cameron International.
Schlumberger pays an annual dividend of $2.00 per share and has a dividend yield of 2.6%. Cameron International does not pay a dividend. Schlumberger pays out 512.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Institutional and Insider Ownership
79.3% of Schlumberger shares are held by institutional investors. 0.4% of Schlumberger shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Schlumberger and Cameron International’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Schlumberger||$27.81 billion||3.88||-$1.69 billion||$0.39||199.92|
Cameron International has lower revenue, but higher earnings than Schlumberger. Cameron International is trading at a lower price-to-earnings ratio than Schlumberger, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Schlumberger has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500. Comparatively, Cameron International has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500.
Schlumberger beats Cameron International on 9 of the 13 factors compared between the two stocks.
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 Cameron International
Cameron International Corporation (Cameron), incorporated on November 10, 1994, provides flow equipment products, systems and services to worldwide oil, gas and process industries. The Company operates through four business segments: Subsea, Surface, Drilling and Valves & Measurement (V&M). The Subsea segment delivers integrated solutions, products, systems and services to the subsea oil and gas market, including integrated subsea production systems. Cameron’s Surface segment designs and manufactures wellhead and Christmas tree systemsfor onshore and offshore topside applications – from conventional to high-pressure, high temperature systems, to specialized systems for dry completions and heavy oil. The Drilling segment is a global supplier of integrated drilling systems. The V&M segment’s businesses provide valves and measurement systems. Its businesses serve portions of the upstream, midstream and downstream markets.
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