Financial Analysis: Solaris Energy Infrastructure (NYSE:SEI) vs. Halliburton (NYSE:HAL)

Halliburton (NYSE:HAL) and Solaris Energy Infrastructure (NYSE:SEI) are both energy companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, institutional ownership, dividends and earnings.

Earnings & Valuation

This table compares Halliburton and Solaris Energy Infrastructure”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Halliburton	$22.18 billion	1.19	$1.28 billion	$2.39	13.32
Solaris Energy Infrastructure	$622.21 million	7.59	$30.17 million	$0.96	64.21

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

Volatility & Risk

Halliburton has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500. Comparatively, Solaris Energy Infrastructure has a beta of 1.4, indicating that its stock price is 40% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Halliburton and Solaris Energy Infrastructure, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Halliburton	1	5	18	0	2.71
Solaris Energy Infrastructure	0	1	9	2	3.08

Halliburton presently has a consensus target price of $43.86, indicating a potential upside of 37.77%. Solaris Energy Infrastructure has a consensus target price of $100.38, indicating a potential upside of 62.86%. Given Solaris Energy Infrastructure’s stronger consensus rating and higher probable upside, analysts plainly believe Solaris Energy Infrastructure is more favorable than Halliburton.

Institutional and Insider Ownership

85.2% of Halliburton shares are owned by institutional investors. Comparatively, 67.4% of Solaris Energy Infrastructure shares are owned by institutional investors. 0.6% of Halliburton shares are owned by company insiders. Comparatively, 20.2% of Solaris Energy Infrastructure shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Halliburton and Solaris Energy Infrastructure’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Halliburton	8.90%	18.36%	7.84%
Solaris Energy Infrastructure	7.99%	12.82%	4.20%

Dividends

Halliburton pays an annual dividend of $0.68 per share and has a dividend yield of 2.1%. Solaris Energy Infrastructure pays an annual dividend of $0.48 per share and has a dividend yield of 0.8%. Halliburton pays out 28.5% of its earnings in the form of a dividend. Solaris Energy Infrastructure pays out 50.0% 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 4 consecutive years. Halliburton is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Halliburton beats Solaris Energy Infrastructure on 11 of the 18 factors compared between the two stocks.

About Halliburton

Halliburton Company (NYSE: HAL) is a global provider of products and services for the energy industry. The company supports the exploration, development, and production of oil and natural gas through technologies and services used throughout the life cycle of a well. Halliburton operates through two primary business segments: Completion and Production, and Drilling and Evaluation. Its offerings include cementing, stimulation, well completion, production enhancement, drilling services, drilling fluids, well testing, wireline and perforating services, formation evaluation, and project management.

About Solaris Energy Infrastructure

Solaris Energy Infrastructure, Inc. provides equipment and services for energy production and power generation. Its offerings include natural gas-fueled power systems and related equipment, as well as mobile systems used to store, transport and deliver proppant at oil and gas wells. The company was established as Solaris Oilfield Infrastructure and later adopted its current name as its business expanded beyond oilfield logistics. Its oilfield services primarily support operators in U.S. shale basins, while its power solutions serve customers seeking scalable power generation.