Halliburton (NYSE:HAL) and Pason Systems (OTCMKTS:PSYTF) Head to Head Survey

Halliburton (NYSE:HAL) and Pason Systems (OTCMKTS:PSYTF) are both energy companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, valuation, risk and analyst recommendations.

Dividends

Halliburton pays an annual dividend of $0.68 per share and has a dividend yield of 1.7%. Pason Systems pays an annual dividend of $0.47 per share and has a dividend yield of 3.8%. Halliburton pays out 23.2% of its earnings in the form of a dividend. Pason Systems pays out 44.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Halliburton has increased its dividend for 3 consecutive years.

Analyst Ratings

This is a summary of recent ratings and price targets for Halliburton and Pason Systems, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Halliburton	0	1	10	1	3.00
Pason Systems	0	0	2	0	3.00

Halliburton currently has a consensus target price of $48.53, indicating a potential upside of 18.49%. Pason Systems has a consensus target price of $12.38, indicating a potential downside of 0.47%. Given Halliburton’s higher probable upside, equities research analysts clearly believe Halliburton is more favorable than Pason Systems.

Valuation and Earnings

This table compares Halliburton and Pason Systems’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Halliburton	$23.02 billion	1.58	$2.64 billion	$2.93	13.98
Pason Systems	N/A	N/A	N/A	$1.07	11.65

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

Profitability

This table compares Halliburton and Pason Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Halliburton	11.46%	31.59%	11.68%
Pason Systems	N/A	N/A	N/A

Insider & Institutional Ownership

85.2% of Halliburton shares are held by institutional investors. Comparatively, 46.7% of Pason Systems shares are held by institutional investors. 0.6% of Halliburton shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Halliburton beats Pason Systems on 13 of the 14 factors compared between the two stocks.

About Halliburton

Halliburton Company provides products and services to the energy industry worldwide. It operates through two segments, Completion and Production, and Drilling and Evaluation. The Completion and Production segment offers production enhancement services that include stimulation and sand control services; cementing services, such as well bonding and casing, and casing equipment; and completion tools that offer downhole solutions and services, including well completion products and services, intelligent well completions, and service tools, as well as liner hanger, sand control, and multilateral systems. This segment also provides electrical submersible pumps, as well as artificial lift services; production solutions comprising coiled tubing, hydraulic workover units, downhole tools, and pumping and nitrogen services; pipeline and process services, such as pre-commissioning, commissioning, maintenance, and decommissioning; and specialty chemicals and services. The Drilling and Evaluation segment offers drilling fluid systems, performance additives, completion fluids, solids control, specialized testing equipment, and waste management services; drilling systems and services; wireline and perforating services consists of 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. This segment also provides cloud based digital services and artificial intelligence solutions on an open architecture for subsurface insights, integrated well construction, and reservoir and production management; testing and subsea services, such as acquisition and analysis of reservoir information and optimization solutions; and project management and integrated asset management services. Halliburton Company was founded in 1919 and is based in Houston, Texas.

About Pason Systems

Pason Systems Inc., together with its subsidiaries, provides instrumentation and data management systems for drilling rigs in Canada, the United States, and internationally. The company provides Electronic Drilling Recorder, which provides real-time drilling data to rig site personnel; DataHub with Pason Live, which is used as the central repository for data and reports captured at the rigs for real-time; and DataLink that provides automated in-house databases, third-party analytics platforms, remote geosteering, and other remote services. It offers AutoDriller to maximize the rate of penetration and bit life; internet solutions, such as auto-aiming satellite dishes, data modems, and bandwidth management software; DAS, a rotary drilling automation and optimization software; Electronic Choke Actuator that controls the choke valve; Gas Analyzer that provides real-time compositional gas analysis; Hazardous Gas Alarm System that detects the presence of hazardous gases; Pit Volume Totalizer, which monitors mud volumes and flow rates during drilling, tripping, and casing operations; and Toolface Control, a directional automation software. In addition, the company provides phone, chat, field, and drilling optimization support, as well as proactive monitoring and office support for data integration. It serves drilling contractors and other oilfield service companies. Pason Systems Inc. was founded in 1978 and is headquartered in Calgary, Canada.