Keane Group (FRAC) versus Halliburton (HAL) Critical Comparison

Keane Group (NYSE: FRAC) and Halliburton (NYSE:HAL) are both oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, analyst recommendations and earnings.

Insider and Institutional Ownership

81.7% of Keane Group shares are held by institutional investors. Comparatively, 79.8% of Halliburton shares are held by institutional investors. 0.6% of Keane Group shares are held by company insiders. Comparatively, 0.5% of Halliburton shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Keane Group and Halliburton’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Keane Group $1.54 billion 1.08 -$36.14 million $0.16 92.94
Halliburton $20.62 billion 2.13 -$463.00 million $1.22 41.14

Keane Group has higher earnings, but lower revenue than Halliburton. Halliburton is trading at a lower price-to-earnings ratio than Keane Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Keane Group and Halliburton’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Keane Group 1.57% 13.67% 6.63%
Halliburton -1.74% 15.87% 5.47%

Dividends

Halliburton pays an annual dividend of $0.72 per share and has a dividend yield of 1.4%. Keane Group does not pay a dividend. Halliburton pays out 59.0% of its earnings in the form of a dividend.

Risk & Volatility

Keane Group has a beta of -0.46, indicating that its share price is 146% less volatile than the S&P 500. Comparatively, Halliburton has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Keane Group and Halliburton, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Keane Group 0 2 14 0 2.88
Halliburton 0 3 21 0 2.88

Keane Group currently has a consensus price target of $20.60, suggesting a potential upside of 38.53%. Halliburton has a consensus price target of $59.27, suggesting a potential upside of 18.10%. Given Keane Group’s higher possible upside, equities research analysts plainly believe Keane Group is more favorable than Halliburton.

Summary

Keane Group beats Halliburton on 8 of the 15 factors compared between the two stocks.

About Keane Group

Keane Group, Inc. provides integrated well completion services primarily in the United States. Its principal service offerings include horizontal and vertical fracturing, wireline perforation and logging, and engineered solutions, as well as other value-added services. The company also provides cementing and drilling services; and engineering software and technical guidance for remedial cementing applications and acidizing. Its customers primarily include integrated and large independent oil and natural gas exploration and production companies. The company has 26 hydraulic fracturing fleets, 31 wireline trucks, 24 cementing pumps, and other ancillary assets located in the Permian Basin, the Marcellus Shale/Utica Shale, the Eagle Ford Formation, the Bakken Formation, and other active oil and gas basins. Keane Group, Inc. was founded in 1973 and is headquartered in Houston, Texas. Keane Group, Inc. is a subsidiary of Keane Investor Holdings LLC.

About Halliburton

Halliburton Company provides a range of services and products to oil and natural gas companies worldwide. The company's Completion and Production segment offers production enhancement services, including stimulation and sand control services; and cementing services, such as bonding the well, well casing, and casing equipment. It also provides completion tools that offer downhole solutions and services, including well completion products and services, intelligent well completions, liner hanger systems, sand control systems, and service tools; production solutions comprising coiled tubing, hydraulic workover units, and downhole tools; and pipeline and process services, such as pre-commissioning, commissioning, maintenance, and decommissioning. In addition, this segment offers oilfield production and completion chemicals and services; and electrical submersible pumps and progressive cavity pumps, as well as artificial lift services to enhance reservoir and wellbore recovery. The company's Drilling and Evaluation segment provides drilling fluid systems, performance additives, completion fluids, solids control, specialized testing equipment, and waste management services; and drilling systems and services. It also offers wireline and perforating services, including open-hole logging, and cased-hole and slickline; and drill bits and services comprising roller cone rock bits, fixed cutter bits, hole enlargement, and related downhole tools and services, as well as coring equipment and services. In addition, this segment provides integrated exploration, drilling, and production software, as well as related professional and data management services; testing and subsea services, such as acquisition and analysis of reservoir information and optimization solutions; and project management, consulting, integrated asset management, and well control and prevention services. Halliburton Company was founded in 1919 and is based in Houston, Texas.

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