Ranger Energy Services (NYSE: RNGR) and Baker Hughes A GE (NYSE:BHI) are both oil related services and equipment – nec companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, earnings, risk and analyst recommendations.

Dividends

Baker Hughes A GE pays an annual dividend of $0.68 per share and has a dividend yield of 1.8%. Ranger Energy Services does not pay a dividend. Baker Hughes A GE pays out -25.2% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent recommendations for Ranger Energy Services and Baker Hughes A GE, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ranger Energy Services 0 3 5 0 2.63
Baker Hughes A GE 1 12 7 0 2.30

Ranger Energy Services presently has a consensus price target of $17.25, indicating a potential upside of 85.09%. Baker Hughes A GE has a consensus price target of $60.33, indicating a potential upside of 60.89%. Given Ranger Energy Services’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Ranger Energy Services is more favorable than Baker Hughes A GE.

Valuation and Earnings

This table compares Ranger Energy Services and Baker Hughes A GE’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Ranger Energy Services $52.80 million 2.70 -$5.00 million ($0.77) -12.10
Baker Hughes A GE N/A N/A N/A ($2.70) -13.89

Baker Hughes A GE has higher revenue, but lower earnings than Ranger Energy Services. Baker Hughes A GE is trading at a lower price-to-earnings ratio than Ranger Energy Services, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

0.1% of Ranger Energy Services shares are held by institutional investors. Comparatively, 91.3% of Baker Hughes A GE shares are held by institutional investors. 0.7% of Baker Hughes A GE shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Ranger Energy Services and Baker Hughes A GE’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ranger Energy Services -14.29% -14.10% -10.47%
Baker Hughes A GE -5.08% -1.59% -2.98%

Summary

Baker Hughes A GE beats Ranger Energy Services on 8 of the 12 factors compared between the two stocks.

Ranger Energy Services Company Profile

Ranger Energy Services, Inc. is an independent provider of high-specification (high-spec) well service rigs and associated services in the United States. The Company focuses on unconventional horizontal well completion and production operations. The Company operates through Well Services and Processing Solutions segment. Well Services segment provides high-spec well service rigs and complementary equipment and services in the United States, with a focus on unconventional horizontal well completion, workover and maintenance operations. Processing Solutions segment engages in the rental, installation, commissioning, start-up, operation and maintenance of MRUs, NGL stabilizer units, NGL storage units and related equipment. The Company also offers full transportation, turn-key mobilization services, installation and ongoing operation services in the field. The Company’s turn-key mobilization services include in-bound transportation and site offloading.

Baker Hughes A GE Company Profile

Baker Hughes, a GE Company is an oil and gas company. The Company is a provider of integrated oilfield products, services and digital solutions. The Company’s products and services include upstream, midstream, downstream, industrial and digital. The Company’s upstream, which includes evaluation, drilling, completions and production. Midstream enables the power and compression efficiency for LNG and pipeline and storage. Downstream builds reliability and safety into process operations that includes refining and petrochemical and fertilizer solutions. The company’s industrial solutions offers power generation, to advanced control systems and sensing technology that power industrial facilities. Digital transformation integrates data on an open platform with security and scale. The digital transformation enables field services with real-time insights. The Company’s technology delivers capacities in smaller footprints.

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