Oceaneering International (NYSE: OII) and Schlumberger N.V. (NYSE:SLB) are both mid-cap oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, risk, earnings, profitability, analyst recommendations, dividends and valuation.

Insider & Institutional Ownership

99.7% of Oceaneering International shares are held by institutional investors. Comparatively, 79.0% of Schlumberger N.V. shares are held by institutional investors. 0.9% of Oceaneering International shares are held by insiders. Comparatively, 0.4% of Schlumberger N.V. shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Oceaneering International and Schlumberger N.V.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Oceaneering International -1.41% 1.14% 0.55%
Schlumberger N.V. 0.62% 3.80% 2.02%

Dividends

Oceaneering International pays an annual dividend of $0.60 per share and has a dividend yield of 2.7%. Schlumberger N.V. pays an annual dividend of $2.00 per share and has a dividend yield of 3.2%. Oceaneering International pays out -206.9% of its earnings in the form of a dividend. Schlumberger N.V. pays out 1,538.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Oceaneering International has raised its dividend for 6 consecutive years.

Earnings and Valuation

This table compares Oceaneering International and Schlumberger N.V.’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Oceaneering International $2.00 billion 1.10 $236.08 million ($0.29) -77.17
Schlumberger N.V. $28.48 billion 3.08 $6.27 billion $0.13 487.65

Schlumberger N.V. has higher revenue and earnings than Oceaneering International. Oceaneering International is trading at a lower price-to-earnings ratio than Schlumberger N.V., indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Oceaneering International has a beta of 1.66, suggesting that its share price is 66% more volatile than the S&P 500. Comparatively, Schlumberger N.V. has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for Oceaneering International and Schlumberger N.V., as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Oceaneering International 2 7 6 0 2.27
Schlumberger N.V. 0 8 18 1 2.74

Oceaneering International presently has a consensus target price of $29.30, suggesting a potential upside of 30.92%. Schlumberger N.V. has a consensus target price of $85.82, suggesting a potential upside of 35.38%. Given Schlumberger N.V.’s stronger consensus rating and higher probable upside, analysts plainly believe Schlumberger N.V. is more favorable than Oceaneering International.

Summary

Schlumberger N.V. beats Oceaneering International on 13 of the 18 factors compared between the two stocks.

About Oceaneering International

Oceaneering International, Inc. is an oilfield provider of engineered services and products, primarily to the offshore oil and gas industry, with a focus on deepwater applications. The Company’s business segments are contained within two businesses: services and products provided to the oil and gas industry (Oilfield) and all other services and products (Advanced Technologies). Its four business segments within the Oilfield business are Remotely Operated Vehicles (ROVs), Subsea Products, Subsea Projects and Asset Integrity. The services and products it provides to the oil and gas industry include remotely operated vehicles, specialty subsea hardware, engineering and project management, subsea intervention services, including manned diving, survey and positioning services and asset integrity and nondestructive testing services. The Company serves the defense, aerospace and commercial theme park industries.

About Schlumberger N.V.

Schlumberger N.V. provides technology for reservoir characterization, drilling, production and processing to the oil and gas industry. The Company’s segments include Reservoir Characterization Group, Drilling Group, Production Group and Cameron Group. The Reservoir Characterization Group consists of the principal technologies involved in finding and defining hydrocarbon resources. The Drilling Group consists of the principal technologies involved in the drilling and positioning of oil and gas wells. The Production Group consists of the principal technologies involved in the lifetime production of oil and gas reservoirs and includes Well Services, Completions, Artificial Lift, Integrated Production Services (IPS) and Schlumberger Production Management (SPM). The Cameron Group consists of the principal technologies involved in pressure and flow control for drilling and intervention rigs, oil and gas wells and production facilities.

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