Schlumberger (NYSE:SLB) and Keane Group (NYSE:FRAC) are both oils/energy companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, earnings, profitability, institutional ownership, valuation and analyst recommendations.

Dividends

Schlumberger pays an annual dividend of $2.00 per share and has a dividend yield of 5.1%. Keane Group does not pay a dividend. Schlumberger pays out 123.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation and Earnings

This table compares Schlumberger and Keane Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Schlumberger $32.82 billion 1.67 $2.14 billion $1.62 24.38
Keane Group $2.14 billion 0.43 $59.33 million $0.92 9.59

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Schlumberger and Keane Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Schlumberger 1 10 11 0 2.45
Keane Group 0 2 13 0 2.87

Schlumberger currently has a consensus price target of $57.16, indicating a potential upside of 44.70%. Keane Group has a consensus price target of $17.00, indicating a potential upside of 92.74%. Given Keane Group’s stronger consensus rating and higher probable upside, analysts plainly believe Keane Group is more favorable than Schlumberger.

Insider & Institutional Ownership

79.3% of Schlumberger shares are held by institutional investors. Comparatively, 90.5% of Keane Group shares are held by institutional investors. 0.5% of Schlumberger shares are held by company insiders. Comparatively, 0.5% of Keane Group shares are held 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.

Risk & Volatility

Schlumberger has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500. Comparatively, Keane Group has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500.

Profitability

This table compares Schlumberger and Keane Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Schlumberger 6.19% 5.87% 3.07%
Keane Group 2.24% 13.57% 6.19%

Schlumberger Company Profile

Schlumberger Limited supplies technology for reservoir characterization, drilling, production, and processing to the oil and gas industry worldwide. The company's Reservoir Characterization segment offers reservoir interpretation and data processing services; open and cased-hole, and slickline services; exploration and production pressure and flow-rate measurement services; tubing-conveyed perforating services; integrated production systems; software, consulting, information management, and IT infrastructure services; reservoir characterization, field development planning, and production enhancement consulting services; petro technical data services and training solutions; and integrated management services. Its Drilling segment designs, manufactures, and markets roller cone and fixed cutter drill bits; supplies drilling fluid systems, fluid systems and specialty equipment, production technology solutions, and engineered managed pressure and underbalanced drilling solutions; and offers environmental services and products. This segment also provides drilling and measurement, land drilling rigs, and related support services; and supplies well planning and drilling, engineering, supervision, logistics, procurement, and contracting services, as well as drilling rig management services. The company's Production segment offers well services; coiled tubing equipment; hydraulic fracturing, multistage completions, perforating, coiled tubing equipment, and services; well completion services and equipment; artificial lift production equipment and optimization services; and production management services. Its Cameron segment offers integrated subsea production systems; drilling equipment and services; onshore and offshore platform wellhead systems and processing solutions; and valve products and measurement systems. The company was formerly known as Socie´te´ de Prospection E´lectrique. Schlumberger Limited was founded in 1926 and is based in Houston, Texas.

Keane Group Company Profile

Keane Group, Inc. engages in the provision of hydraulic and engineered related solutions. It provides horizontal and vertical fracturing, wireline perforation and logging & engineered, as well as other value-added services. The company operates through two segments: Completion, and Other Services. The Completion Services segment refers to the hydraulic fracturing and wireline divisions. The Other Services include coiled tubing, cementing and ancillary services. The company was founded in 1973 and is headquartered in Houston, TX.

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