Solaris Oilfield Infra (SOI) & Baker Hughes, a GE (BHGE) Critical Analysis

Solaris Oilfield Infra (NYSE: SOI) and Baker Hughes, a GE (NYSE:BHGE) are both oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, valuation, profitability, dividends and institutional ownership.

Valuation and Earnings

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This table compares Solaris Oilfield Infra and Baker Hughes, a GE’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Solaris Oilfield Infra $67.39 million 11.25 $7.30 million $0.48 34.29
Baker Hughes, a GE $17.26 billion 0.72 $36.00 million $0.52 56.54

Baker Hughes, a GE has higher revenue and earnings than Solaris Oilfield Infra. Solaris Oilfield Infra is trading at a lower price-to-earnings ratio than Baker Hughes, a GE, indicating that it is currently the more affordable of the two stocks.

Dividends

Baker Hughes, a GE pays an annual dividend of $2.16 per share and has a dividend yield of 7.3%. Solaris Oilfield Infra does not pay a dividend. Baker Hughes, a GE pays out 415.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a summary of current ratings for Solaris Oilfield Infra and Baker Hughes, a GE, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Solaris Oilfield Infra 0 1 12 0 2.92
Baker Hughes, a GE 0 11 10 0 2.48

Solaris Oilfield Infra currently has a consensus price target of $19.23, suggesting a potential upside of 16.81%. Baker Hughes, a GE has a consensus price target of $36.82, suggesting a potential upside of 25.22%. Given Baker Hughes, a GE’s higher possible upside, analysts clearly believe Baker Hughes, a GE is more favorable than Solaris Oilfield Infra.

Insider and Institutional Ownership

64.5% of Solaris Oilfield Infra shares are owned by institutional investors. Comparatively, 92.3% of Baker Hughes, a GE shares are owned by institutional investors. 0.2% of Baker Hughes, a GE shares are owned by 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.

Profitability

This table compares Solaris Oilfield Infra and Baker Hughes, a GE’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Solaris Oilfield Infra 12.50% 11.07% 9.77%
Baker Hughes, a GE -2.79% 0.10% 0.07%

Summary

Baker Hughes, a GE beats Solaris Oilfield Infra on 8 of the 15 factors compared between the two stocks.

Solaris Oilfield Infra Company Profile

Solaris Oilfield Infrastructure, Inc. manufactures and sells patented mobile proppant management systems to unload, store, and deliver proppant at oil and natural gas well sites in the United States. The company's systems are designed for transferring large quantities of proppant to the well sites. It also provides real-time inventory management solutions for proppant mining, rail shipping, and transloading operations. The company serves oil and natural gas exploration and production, as well as oilfield service companies. Solaris Oilfield Infrastructure, Inc. was founded in 2014 and is based 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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