Baker Hughes, a GE (BHGE) versus Its Rivals Financial Contrast

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

Dividends

Baker Hughes, a GE pays an annual dividend of $2.16 per share and has a dividend yield of 6.1%. 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.

Risk & Volatility

Baker Hughes, a GE has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500. Comparatively, Baker Hughes, a GE’s competitors have a beta of 0.94, suggesting that their average stock price is 6% less volatile than the S&P 500.

Earnings & Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
Baker Hughes, a GE $17.26 billion $36.00 million 68.29
Baker Hughes, a GE Competitors $3.65 billion -$224.01 million 16.82

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

Institutional and Insider Ownership

93.2% of Baker Hughes, a GE shares are owned by institutional investors. Comparatively, 63.9% of shares of all “Oil & gas field machinery” companies are owned by institutional investors. 0.2% of Baker Hughes, a GE shares are owned by insiders. Comparatively, 18.9% of shares of all “Oil & gas field machinery” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Baker Hughes, a GE and its competitors’ 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 -6.49% -24.67% -0.10%

Analyst Recommendations

This is a breakdown of current recommendations for Baker Hughes, a GE and its competitors, as provided 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 147 899 877 20 2.40

Baker Hughes, a GE presently has a consensus target price of $37.02, suggesting a potential upside of 4.26%. As a group, “Oil & gas field machinery” companies have a potential upside of 0.87%. Given Baker Hughes, a GE’s stronger consensus rating and higher probable upside, equities analysts plainly believe Baker Hughes, a GE is more favorable than its competitors.

Summary

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

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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