SLB (NYSE:SLB – Get Free Report) and Core Laboratories (NYSE:CLB – Get Free Report) are both energy companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, earnings, valuation, institutional ownership and risk.
Earnings and Valuation
This table compares SLB and Core Laboratories”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SLB | $35.71 billion | 2.09 | $3.37 billion | $2.06 | 24.52 |
| Core Laboratories | $526.52 million | 0.79 | $29.67 million | $0.38 | 23.92 |
SLB has higher revenue and earnings than Core Laboratories. Core Laboratories is trading at a lower price-to-earnings ratio than SLB, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares SLB and Core Laboratories’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SLB | 8.40% | 13.77% | 6.80% |
| Core Laboratories | 3.42% | 8.94% | 4.22% |
Analyst Ratings
This is a summary of recent ratings and recommmendations for SLB and Core Laboratories, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SLB | 1 | 4 | 23 | 0 | 2.79 |
| Core Laboratories | 0 | 1 | 1 | 0 | 2.50 |
SLB currently has a consensus price target of $61.63, indicating a potential upside of 22.01%. Core Laboratories has a consensus price target of $21.00, indicating a potential upside of 131.00%. Given Core Laboratories’ higher possible upside, analysts plainly believe Core Laboratories is more favorable than SLB.
Institutional and Insider Ownership
82.0% of SLB shares are owned by institutional investors. Comparatively, 97.8% of Core Laboratories shares are owned by institutional investors. 0.2% of SLB shares are owned by company insiders. Comparatively, 1.3% of Core Laboratories shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Dividends
SLB pays an annual dividend of $1.18 per share and has a dividend yield of 2.3%. Core Laboratories pays an annual dividend of $0.04 per share and has a dividend yield of 0.4%. SLB pays out 57.3% of its earnings in the form of a dividend. Core Laboratories pays out 10.5% 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. SLB has raised its dividend for 5 consecutive years. SLB is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Risk and Volatility
SLB has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500. Comparatively, Core Laboratories has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500.
Summary
SLB beats Core Laboratories on 12 of the 17 factors compared between the two stocks.
About SLB
SLB (NYSE: SLB), formerly known as Schlumberger, is a global technology company serving the energy industry. Founded in 1926, the company adopted the SLB name in 2022 and provides technologies and services across the energy value chain. Its offerings include subsurface evaluation, drilling and well-construction services, production systems, and digital tools that help customers plan and manage energy projects. SLB also develops solutions for areas such as carbon capture and storage, geothermal energy, and lithium production.
About Core Laboratories
Core Laboratories Inc. provides specialized services and products to the oil and natural gas industry. Its work helps customers evaluate reservoirs and improve the performance of producing wells. The company’s Reservoir Description business analyzes rock and fluid samples and provides laboratory testing, data, and reservoir studies. These services help energy companies assess subsurface properties and make decisions about exploration and field development. Through its Production Enhancement business, Core Laboratories offers well diagnostics, completion-related services, and technologies designed to support production and improve recovery.
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