Baker Hughes (BKR) Competitors

Diamondback Energy (NASDAQ:FANG) and Baker Hughes (NASDAQ:BKR) are both large-cap energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, earnings, analyst recommendations, media sentiment and profitability.

Do analysts prefer FANG or BKR?

Diamondback Energy currently has a consensus target price of $191.59, suggesting a potential upside of 31.10%. Baker Hughes has a consensus target price of $51.47, suggesting a potential upside of 18.30%. Given Diamondback Energy's stronger consensus rating and higher probable upside, equities analysts plainly believe Diamondback Energy is more favorable than Baker Hughes.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diamondback Energy	0 Sell rating(s)	1 Hold rating(s)	18 Buy rating(s)	2 Strong Buy rating(s)	3.05
Baker Hughes	0 Sell rating(s)	3 Hold rating(s)	18 Buy rating(s)	0 Strong Buy rating(s)	2.86

Which has better earnings and valuation, FANG or BKR?

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

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Diamondback Energy	$12.84B	3.33	$3.34B	$16.35	8.94
Baker Hughes	$27.83B	1.54	$2.98B	$3.06	14.22

Is FANG or BKR more profitable?

Diamondback Energy has a net margin of 30.84% compared to Baker Hughes' net margin of 11.04%. Baker Hughes' return on equity of 14.56% beat Diamondback Energy's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Diamondback Energy	30.84%	11.22%	6.53%
Baker Hughes	11.04%	14.56%	6.53%

Do insiders & institutionals have more ownership in FANG or BKR?

90.0% of Diamondback Energy shares are owned by institutional investors. Comparatively, 92.1% of Baker Hughes shares are owned by institutional investors. 0.7% of Diamondback Energy shares are owned by insiders. Comparatively, 0.3% of Baker Hughes shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Does the media prefer FANG or BKR?

In the previous week, Baker Hughes had 38 more articles in the media than Diamondback Energy. MarketBeat recorded 58 mentions for Baker Hughes and 20 mentions for Diamondback Energy. Diamondback Energy's average media sentiment score of 1.55 beat Baker Hughes' score of 0.98 indicating that Diamondback Energy is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Diamondback Energy	17 Very Positive mention(s)	2 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Very Positive
Baker Hughes	27 Very Positive mention(s)	5 Positive mention(s)	9 Neutral mention(s)	3 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has more volatility and risk, FANG or BKR?

Diamondback Energy has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500. Comparatively, Baker Hughes has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500.

Is FANG or BKR a better dividend stock?

Diamondback Energy pays an annual dividend of $4.00 per share and has a dividend yield of 2.7%. Baker Hughes pays an annual dividend of $0.92 per share and has a dividend yield of 2.1%. Diamondback Energy pays out 24.5% of its earnings in the form of a dividend. Baker Hughes pays out 30.1% 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. Diamondback Energy has raised its dividend for 7 consecutive years and Baker Hughes has raised its dividend for 4 consecutive years. Diamondback Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Diamondback Energy beats Baker Hughes on 13 of the 18 factors compared between the two stocks.