Baker Hughes (NASDAQ:BKR) versus ProPetro (NYSE:PUMP) Head to Head Analysis

ProPetro (NYSE:PUMP) and Baker Hughes (NASDAQ:BKR) are both energy companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.

Risk & Volatility

ProPetro has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500. Comparatively, Baker Hughes has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500.

Profitability

This table compares ProPetro and Baker Hughes’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ProPetro	-11.10%	1.84%	1.22%
Baker Hughes	11.04%	14.56%	6.53%

Institutional & Insider Ownership

84.7% of ProPetro shares are held by institutional investors. Comparatively, 92.1% of Baker Hughes shares are held by institutional investors. 1.6% of ProPetro shares are held by insiders. Comparatively, 0.3% of Baker Hughes shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for ProPetro and Baker Hughes, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ProPetro	1	4	2	0	2.14
Baker Hughes	0	3	21	0	2.88

ProPetro presently has a consensus price target of $7.80, indicating a potential upside of 48.29%. Baker Hughes has a consensus price target of $52.32, indicating a potential upside of 4.43%. Given ProPetro’s higher probable upside, equities analysts clearly believe ProPetro is more favorable than Baker Hughes.

Valuation and Earnings

This table compares ProPetro and Baker Hughes”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ProPetro	$1.44 billion	0.38	-$137.86 million	($1.47)	-3.58
Baker Hughes	$27.83 billion	1.77	$2.98 billion	$3.06	16.37

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

Summary

Baker Hughes beats ProPetro on 11 of the 14 factors compared between the two stocks.

About ProPetro

ProPetro Holding Corp. operates as an integrated oilfield services company. The company provides hydraulic fracturing, wireline, cementing, and other complementary oilfield completion services to upstream oil and gas companies in the Permian Basin. ProPetro Holding Corp. was founded in 2007 and is headquartered in Midland, Texas.

About Baker Hughes

Baker Hughes Company provides a portfolio of technologies and services to energy and industrial value chain worldwide. The company operates through Oilfield Services & Equipment (OFSE) and Industrial & Energy Technology (IET) segments. The OFSE segment designs and manufactures products and provides related services, including exploration, appraisal, development, production, rejuvenation, and decommissioning for onshore and offshore oilfield operations. This segment also provides drilling services, drill bits, and drilling and completions fluids; completions, intervention, measurements, pressure pumping, and wireline services; artificial lift systems, and oilfield and industrial chemicals; subsea projects and services, flexible pipe systems, and surface pressure control systems; and integrated well services and solutions. It serves oil and natural gas companies; the United States and international independent oil and natural gas companies; national or state-owned oil companies; engineering, procurement, and construction contractors; geothermal companies; and other oilfield service companies. The IET segment provides gas technology equipment, including drivers, driven equipment, flow control, and turnkey solutions for the mechanical-drive, compression, and power-generation applications; and energy sectors, such as oil and gas, LNG operations, petrochemical, and carbon solutions. This segment also provides rack-based vibration monitoring equipment and sensors; integrated asset performance management products; inspection services; pumps, valves, and gears; precision sensors and instrumentation, and condition monitoring solutions. It serves upstream, midstream, downstream, onshore, offshore, and small and large scale customers. The company was formerly known as Baker Hughes, a GE company and changed its name to Baker Hughes Company in October 2019. Baker Hughes Company was incorporated in 2016 and is based in Houston, Texas.