Financial Analysis: Schlumberger (NYSE:SLB) versus Terra Energy & Resource Technologies (OTCMKTS:TEGR)

Schlumberger (NYSE:SLB) and Terra Energy & Resource Technologies (OTCMKTS:TEGR) are both energy companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, valuation, analyst recommendations, institutional ownership and dividends.

Analyst Ratings

This is a summary of current recommendations for Schlumberger and Terra Energy & Resource Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Schlumberger	0	4	15	2	2.90
Terra Energy & Resource Technologies	0	0	0	0	0.00

Schlumberger presently has a consensus price target of $52.86, suggesting a potential upside of 47.64%. Given Schlumberger’s stronger consensus rating and higher possible upside, analysts clearly believe Schlumberger is more favorable than Terra Energy & Resource Technologies.

Valuation & Earnings

This table compares Schlumberger and Terra Energy & Resource Technologies”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Schlumberger	$36.29 billion	1.33	$4.46 billion	$2.92	12.26
Terra Energy & Resource Technologies	N/A	N/A	N/A	N/A	N/A

Schlumberger has higher revenue and earnings than Terra Energy & Resource Technologies.

Profitability

This table compares Schlumberger and Terra Energy & Resource Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Schlumberger	11.53%	20.99%	9.34%
Terra Energy & Resource Technologies	N/A	N/A	N/A

Insider & Institutional Ownership

82.0% of Schlumberger shares are owned by institutional investors. 0.3% of Schlumberger shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Schlumberger beats Terra Energy & Resource Technologies on 10 of the 10 factors compared between the two stocks.

About Schlumberger

Schlumberger Limited engages in the provision of technology for the energy industry worldwide. The company operates through four divisions: Digital & Integration, Reservoir Performance, Well Construction, and Production Systems. The company provides field development and hydrocarbon production, carbon management, and integration of adjacent energy systems; reservoir interpretation and data processing services for exploration data; and well construction and production improvement services and products. It also offers subsurface geology and fluids evaluation information; open and cased hole services; exploration and production pressure, and flow-rate measurement services; and pressure pumping, well stimulation, and coiled tubing equipment solutions. In addition, the company offers mud logging, directional drilling, measurement-while-drilling, and logging-while-drilling services, as well as engineering support services; supplies drilling fluid systems; designs, manufactures, and markets roller cone and fixed cutter drill bits; bottom-hole-assembly and borehole enlargement technologies; well cementing products and services; well planning, well drilling, engineering, supervision, logistics, procurement, and contracting of third parties, as well as drilling rig management solutions; and drilling equipment and services, as well as land drilling rigs and related services. Further, it provides artificial lift production equipment and optimization services; supplies packers, safety valves, sand control technology, and various intelligent well completions technology and equipment; designs and manufactures valves, chokes, actuators, and surface trees; and OneSubsea, an integrated solutions, products, systems, and services, including wellheads, subsea trees, manifolds and flowline connectors, control systems, connectors, and services. The company was formerly known as Socie´te´ de Prospection E´lectrique. Schlumberger Limited was founded in 1926 and is based in Houston, Texas.

About Terra Energy & Resource Technologies

Terra Energy & Resource Technologies, Inc., through its subsidiary, Terra Insight Services, Inc., operates as a natural resource exploration technology company worldwide. It provides mapping and analysis services for exploration, drilling, and mining companies related to natural resources. The company’s technologies consist of Sub Terrain Prospecting technology, Naturally Adsorbed Gas Survey technology, Side View Seismic Locator technology, and Seismic Location of Emission Centers technology. Its technologies predict and locate commercially viable deposits of hydrocarbons, gold, diamonds, and other natural resources, as well as assess them for onshore or offshore geographic area. Terra Energy & Resource Technologies, Inc. was founded in 2005 and is based in New York, New York.