Comparing Baker Hughes (NASDAQ:BKR) and NPK International (NYSE:NPKI)

Baker Hughes (NASDAQ:BKR) and NPK International (NYSE:NPKI) are both energy companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, profitability, risk, analyst recommendations, dividends, earnings and institutional ownership.

Profitability

This table compares Baker Hughes and NPK International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Baker Hughes	10.70%	14.58%	6.30%
NPK International	-28.47%	5.93%	4.08%

Risk and Volatility

Baker Hughes has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500. Comparatively, NPK International has a beta of 2.12, suggesting that its share price is 112% more volatile than the S&P 500.

Earnings and Valuation

This table compares Baker Hughes and NPK International”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Baker Hughes	$27.84 billion	1.36	$2.98 billion	$2.93	13.08
NPK International	$233.30 million	3.03	$14.52 million	($1.69)	-4.95

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

Insider & Institutional Ownership

92.1% of Baker Hughes shares are owned by institutional investors. Comparatively, 80.8% of NPK International shares are owned by institutional investors. 0.3% of Baker Hughes shares are owned by company insiders. Comparatively, 4.9% of NPK International shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Baker Hughes and NPK International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Baker Hughes	0	2	18	0	2.90
NPK International	0	0	1	1	3.50

Baker Hughes presently has a consensus target price of $49.11, indicating a potential upside of 28.13%. NPK International has a consensus target price of $11.50, indicating a potential upside of 37.40%. Given NPK International’s stronger consensus rating and higher possible upside, analysts clearly believe NPK International is more favorable than Baker Hughes.

Summary

Baker Hughes beats NPK International on 9 of the 15 factors compared between the two stocks.

About Baker Hughes

Baker Hughes Company provides a portfolio of technologies and services to energy and industrial value chain worldwide. The company operates through Oilfield Services & Equipment (OFSE) and Industrial & Energy Technology (IET) segments. The OFSE segment designs and manufactures products and provides related services, including exploration, appraisal, development, production, rejuvenation, and decommissioning for onshore and offshore oilfield operations. This segment also provides drilling services, drill bits, and drilling and completions fluids; completions, intervention, measurements, pressure pumping, and wireline services; artificial lift systems, and oilfield and industrial chemicals; subsea projects and services, flexible pipe systems, and surface pressure control systems; and integrated well services and solutions. It serves oil and natural gas companies; the United States and international independent oil and natural gas companies; national or state-owned oil companies; engineering, procurement, and construction contractors; geothermal companies; and other oilfield service companies. The IET segment provides gas technology equipment, including drivers, driven equipment, flow control, and turnkey solutions for the mechanical-drive, compression, and power-generation applications; and energy sectors, such as oil and gas, LNG operations, petrochemical, and carbon solutions. This segment also provides rack-based vibration monitoring equipment and sensors; integrated asset performance management products; inspection services; pumps, valves, and gears; precision sensors and instrumentation, and condition monitoring solutions. It serves upstream, midstream, downstream, onshore, offshore, and small and large scale customers. The company was formerly known as Baker Hughes, a GE company and changed its name to Baker Hughes Company in October 2019. Baker Hughes Company was incorporated in 2016 and is based in Houston, Texas.

About NPK International

NPK International Inc. provides products, rentals, and services primarily to the oil and natural gas exploration and production (E&P) industry. It operates through two segments, Fluids Systems and Industrial Solutions. The Fluids Systems segment provides drilling, completion, and stimulation fluids products and related technical services to customers primarily in the North America, Europe, the Middle East, and Africa, as well as other countries in the Asia Pacific and Latin America. The Industrial Solutions segment offers composite matting system rentals utilized for temporary worksite access; related site construction and services to customers in various markets, including power transmission, E&P, pipeline, renewable energy, petrochemical, construction, and other industries primarily in the United States and Europe; recyclable composite mats to customers worldwide; and access road construction, site planning and preparation, environmental protection, erosion control, and site restoration services. The company was formerly known as Newpark Resources, Inc. and changed its name to NPK International Inc. in December 2024. The company was incorporated in 1932 and is headquartered in The Woodlands, Texas.