Head to Head Survey: Schlumberger (SLB) and Basic Energy Services (BAS)

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

Valuation and Earnings

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This table compares Schlumberger and Basic Energy Services’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Schlumberger $30.44 billion 3.12 -$1.51 billion $1.50 45.68
Basic Energy Services $864.04 million 0.48 -$96.67 million ($2.33) -6.68

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

Dividends

Schlumberger pays an annual dividend of $2.00 per share and has a dividend yield of 2.9%. Basic Energy Services does not pay a dividend. Schlumberger pays out 133.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a summary of recent recommendations and price targets for Schlumberger and Basic Energy Services, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Schlumberger 0 4 26 0 2.87
Basic Energy Services 0 4 4 0 2.50

Schlumberger presently has a consensus target price of $80.71, suggesting a potential upside of 17.79%. Basic Energy Services has a consensus target price of $28.57, suggesting a potential upside of 83.62%. Given Basic Energy Services’ higher probable upside, analysts plainly believe Basic Energy Services is more favorable than Schlumberger.

Insider and Institutional Ownership

80.0% of Schlumberger shares are owned by institutional investors. 0.5% of Schlumberger shares are owned by company insiders. Comparatively, 2.0% of Basic Energy Services shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Schlumberger and Basic Energy Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Schlumberger -4.94% 5.27% 2.81%
Basic Energy Services -11.19% -16.12% -7.15%

Volatility and Risk

Schlumberger has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500. Comparatively, Basic Energy Services has a beta of 2.68, meaning that its stock price is 168% more volatile than the S&P 500.

Summary

Schlumberger beats Basic Energy Services on 11 of the 16 factors compared between the two stocks.

Schlumberger Company Profile

Schlumberger Limited supplies technology products and services to the oil and gas exploration and production industry worldwide. The company's Reservoir Characterization Group segment provides reservoir interpretation and data processing services; open and cased-hole services; slickline services; exploration and production pressure and flow-rate measurement services at the surface and downhole; software integrated solutions, such as software, consulting, information management, and IT infrastructure services; consulting services for reservoir characterization, field development planning, and production enhancement; and petrotechnical data services and training solutions, as well as integrated management services. Its Drilling Group segment designs, manufactures, and markets roller cone and fixed cutter drill bits; supplies drilling fluid systems; provides pressure drilling and underbalanced drilling solutions, and environmental services and products, as well as mud logging, and land drilling rigs and support services; and offers well planning and drilling, engineering, supervision, logistics, procurement, contracting, and drilling rig management services, as well as bottom-hole-assembly, borehole-enlargement technologies, impact tools, tubulars, and tubular services. The company's Production Group segment provides well services comprising pressure pumping, well cementing, and stimulation; hydraulic fracturing, multistage completions, perforating, coiled tubing equipment, and services; well completion services and equipment, such as packers, safety valves, and sand control technology; artificial lifts; and integrated production and production management services. Its Cameron Group segment offers integrated subsea production systems; surface systems; drilling equipment and services; 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.

Basic Energy Services Company Profile

Basic Energy Services, Inc. provides a range of well site services in the United States to oil and natural gas drilling and producing companies, including completion and remedial services, fluid services, well servicing and contract drilling. The Company operates through the segment, which include Completion and Remedial Services, Fluid Services, Well Servicing and Contract Drilling. The Company’s operations are managed regionally and are concentrated in the United States onshore oil and natural gas producing regions located in Texas, New Mexico, Oklahoma, Arkansas, Kansas, Louisiana, Wyoming, North Dakota, Colorado, Utah, Montana, West Virginia, California, Ohio and Pennsylvania. Its operations are focused on liquids-rich basins, as well as natural gas-focused shale plays characterized by prolific reserves. It has a presence in the Permian Basin and the Bakken, Eagle Ford, Haynesville and Marcellus shales.

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