Halliburton (NYSE:HAL) versus TechnipFMC (NYSE:FTI) Financial Analysis

TechnipFMC (NYSE:FTI) and Halliburton (NYSE:HAL) are both large-cap energy companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, risk, valuation, profitability and institutional ownership.

Earnings and Valuation

This table compares TechnipFMC and Halliburton”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TechnipFMC	$9.08 billion	1.58	$842.90 million	$2.12	16.51
Halliburton	$22.94 billion	0.79	$2.50 billion	$2.14	9.87

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

Analyst Recommendations

This is a summary of current recommendations for TechnipFMC and Halliburton, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TechnipFMC	0	3	11	1	2.87
Halliburton	0	8	12	0	2.60

TechnipFMC presently has a consensus price target of $38.9231, suggesting a potential upside of 11.18%. Halliburton has a consensus price target of $31.00, suggesting a potential upside of 46.71%. Given Halliburton’s higher possible upside, analysts clearly believe Halliburton is more favorable than TechnipFMC.

Risk & Volatility

TechnipFMC has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500. Comparatively, Halliburton has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500.

Dividends

TechnipFMC pays an annual dividend of $0.20 per share and has a dividend yield of 0.6%. Halliburton pays an annual dividend of $0.68 per share and has a dividend yield of 3.2%. TechnipFMC pays out 9.4% of its earnings in the form of a dividend. Halliburton pays out 31.8% 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. TechnipFMC has raised its dividend for 1 consecutive years and Halliburton has raised its dividend for 4 consecutive years. Halliburton is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares TechnipFMC and Halliburton’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TechnipFMC	9.60%	29.42%	9.54%
Halliburton	8.37%	21.45%	8.85%

Institutional and Insider Ownership

96.6% of TechnipFMC shares are owned by institutional investors. Comparatively, 85.2% of Halliburton shares are owned by institutional investors. 1.8% of TechnipFMC shares are owned by insiders. Comparatively, 0.6% of Halliburton shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

TechnipFMC beats Halliburton on 10 of the 18 factors compared between the two stocks.

About TechnipFMC

TechnipFMC plc engages in the energy projects, technologies, and systems and services businesses in Europe, Central Asia, North America, Latin America, the Asia Pacific, Africa, the Middle East, and internationally. It operates through two segments: Subsea and Surface Technologies. The Subsea segment engages in the design, engineering, procurement, manufacturing, fabrication, installation, and life of field services for subsea systems, subsea field infrastructure, and subsea pipe systems used in oil and gas production and transportation. It provides subsea production and processing system; flexible pipe; subsea umbilicals, risers, and flowlines; vessels; robotics; well and asset services; and Subsea Studio for optimizing the development, execution, and operation of current and future subsea fields. The Surface Technologies segment designs, manufactures, and services products and systems used in land and shallow water exploration and production of crude oil and natural gas. This segment offers drilling; surface wellheads and production trees systems; iComplete, a pressure control system; fracturing tree and manifold systems; flexible pipes; safety and integrity systems, multiphase meter modules, in-line separation and processing systems, and standard pumps; well control and integrity systems; separation and processing systems; skid systems; and flow measurement and automation solutions. It also offers planning, testing and installation, commissioning, operations, replacement and upgrade, maintenance, storage, preservation, intervention, integrity, decommissioning, and abandonment; and supplies flowline products and services. TechnipFMC plc was founded in 1884 and is headquartered in Houston, Texas.

About Halliburton

Halliburton Company provides products and services to the energy industry worldwide. It operates through two segments, Completion and Production, and Drilling and Evaluation. The Completion and Production segment offers production enhancement services that include stimulation and sand control services; cementing services, such as well bonding and casing, and casing equipment; and completion tools that offer downhole solutions and services, including well completion products and services, intelligent well completions, and service tools, as well as liner hanger, sand control, and multilateral systems. This segment also provides electrical submersible pumps, as well as artificial lift services; production solutions comprising coiled tubing, hydraulic workover units, downhole tools, and pumping and nitrogen services; pipeline and process services, such as pre-commissioning, commissioning, maintenance, and decommissioning; and specialty chemicals and services. The Drilling and Evaluation segment offers drilling fluid systems, performance additives, completion fluids, solids control, specialized testing equipment, and waste management services; drilling systems and services; wireline and perforating services consists of open-hole logging, and cased-hole and slickline; and drill bits and services comprising roller cone rock bits, fixed cutter bits, hole enlargement, and related downhole tools and services, as well as coring equipment and services. This segment also provides cloud based digital services and artificial intelligence solutions on an open architecture for subsurface insights, integrated well construction, and reservoir and production management; testing and subsea services, such as acquisition and analysis of reservoir information and optimization solutions; and project management and integrated asset management services. Halliburton Company was founded in 1919 and is based in Houston, Texas.