Head-To-Head Contrast: Baker Hughes, a GE (BHGE) versus Its Competitors

Baker Hughes, a GE (NYSE: BHGE) is one of 14 public companies in the “Oil & gas field machinery” industry, but how does it weigh in compared to its peers? We will compare Baker Hughes, a GE to similar businesses based on the strength of its dividends, institutional ownership, risk, profitability, valuation, earnings and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations for Baker Hughes, a GE and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Baker Hughes, a GE 0 13 11 0 2.46
Baker Hughes, a GE Competitors 146 887 872 20 2.40

Baker Hughes, a GE currently has a consensus target price of $37.02, indicating a potential upside of 7.84%. As a group, “Oil & gas field machinery” companies have a potential upside of 4.03%. Given Baker Hughes, a GE’s stronger consensus rating and higher probable upside, research analysts clearly believe Baker Hughes, a GE is more favorable than its peers.

Dividends

Baker Hughes, a GE pays an annual dividend of $2.16 per share and has a dividend yield of 6.3%. 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. As a group, “Oil & gas field machinery” companies pay a dividend yield of 2.7% and pay out 207.2% of their earnings in the form of a dividend.

Insider & Institutional Ownership

92.2% of Baker Hughes, a GE shares are held by institutional investors. Comparatively, 73.1% of shares of all “Oil & gas field machinery” companies are held by institutional investors. 0.2% of Baker Hughes, a GE shares are held by company insiders. Comparatively, 7.8% of shares of all “Oil & gas field machinery” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Baker Hughes, a GE and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Baker Hughes, a GE -1.28% 0.25% 0.17%
Baker Hughes, a GE Competitors -7.67% -9.66% -0.42%

Volatility & Risk

Baker Hughes, a GE has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500. Comparatively, Baker Hughes, a GE’s peers have a beta of 0.97, meaning that their average share price is 3% less volatile than the S&P 500.

Earnings & Valuation

This table compares Baker Hughes, a GE and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Baker Hughes, a GE $17.26 billion $36.00 million 66.02
Baker Hughes, a GE Competitors $3.65 billion -$224.01 million 17.93

Baker Hughes, a GE has higher revenue and earnings than its peers. Baker Hughes, a GE is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

Baker Hughes, a GE beats its peers on 11 of the 15 factors compared.

About Baker Hughes, a GE

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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