Financial Comparison: Halliburton (HAL) vs. Its Competitors

Halliburton (NYSE:HAL) is one of 42 publicly-traded companies in the “OIL – FIELD SVCS” industry, but how does it contrast to its peers? We will compare Halliburton to similar companies based on the strength of its earnings, valuation, institutional ownership, risk, analyst recommendations, profitability and dividends.

Analyst Ratings

This is a breakdown of recent recommendations for Halliburton and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Halliburton	0	7	15	1	2.74
Halliburton Competitors	325	1983	3201	123	2.55

Halliburton presently has a consensus price target of $36.71, suggesting a potential downside of 2.48%. As a group, “OIL – FIELD SVCS” companies have a potential downside of 3.74%. Given Halliburton’s stronger consensus rating and higher possible upside, equities analysts plainly believe Halliburton is more favorable than its peers.

Valuation & Earnings

This table compares Halliburton and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Halliburton	$22.18 billion	$1.28 billion	24.93
Halliburton Competitors	$4.81 billion	$355.30 million	88.62

Halliburton has higher revenue and earnings than its peers. Halliburton is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Halliburton and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Halliburton	5.78%	19.77%	8.18%
Halliburton Competitors	4.31%	4.17%	2.35%

Institutional and Insider Ownership

85.2% of Halliburton shares are owned by institutional investors. Comparatively, 57.8% of shares of all “OIL – FIELD SVCS” companies are owned by institutional investors. 0.6% of Halliburton shares are owned by insiders. Comparatively, 8.1% of shares of all “OIL – FIELD SVCS” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Halliburton pays an annual dividend of $0.68 per share and has a dividend yield of 1.8%. Halliburton pays out 45.0% of its earnings in the form of a dividend. As a group, “OIL – FIELD SVCS” companies pay a dividend yield of 2.0% and pay out 44.7% of their earnings in the form of a dividend. Halliburton has raised its dividend for 4 consecutive years. Halliburton lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Risk & Volatility

Halliburton has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500. Comparatively, Halliburton’s peers have a beta of 2.96, suggesting that their average share price is 196% more volatile than the S&P 500.

Summary

Halliburton beats its peers on 10 of the 15 factors compared.

Halliburton Company Profile

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.