Comparing Baker Hughes (NASDAQ:BKR) and Mammoth Energy Services (NASDAQ:TUSK)

Baker Hughes (NASDAQ:BKR) and Mammoth Energy Services (NASDAQ:TUSK) are both energy companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, valuation, earnings and dividends.

Profitability

This table compares Baker Hughes and Mammoth Energy Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Baker Hughes	11.04%	14.56%	6.53%
Mammoth Energy Services	-18.13%	-29.24%	-19.35%

Earnings and Valuation

This table compares Baker Hughes and Mammoth Energy Services”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Baker Hughes	$27.83 billion	1.72	$2.98 billion	$3.06	15.85
Mammoth Energy Services	$187.93 million	0.59	-$207.33 million	($0.65)	-3.54

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

Insider & Institutional Ownership

92.1% of Baker Hughes shares are owned by institutional investors. Comparatively, 79.7% of Mammoth Energy Services shares are owned by institutional investors. 0.3% of Baker Hughes shares are owned by insiders. Comparatively, 2.1% of Mammoth Energy Services shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Baker Hughes and Mammoth Energy Services, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Baker Hughes	0	4	22	0	2.85
Mammoth Energy Services	1	0	0	0	1.00

Baker Hughes presently has a consensus target price of $52.00, indicating a potential upside of 7.22%. Given Baker Hughes’ stronger consensus rating and higher probable upside, analysts clearly believe Baker Hughes is more favorable than Mammoth Energy Services.

Volatility & Risk

Baker Hughes has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500. Comparatively, Mammoth Energy Services has a beta of 1.43, suggesting that its stock price is 43% more volatile than the S&P 500.

Summary

Baker Hughes beats Mammoth Energy Services on 12 of the 14 factors compared between the two stocks.

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.

About Mammoth Energy Services

Mammoth Energy Services, Inc. operates as an energy services company in the United States, Canada, and internationally. The company operates in four segments: Well Completion Services, Infrastructure Services, Natural Sand Proppant Services, and Drilling Services. The company offers pressure pumping and hydraulic fracturing, sand hauling, and water transfer services; and master services agreements. It also provides a range of services on electric transmission and distribution, and networks and substation facilities, including engineering, design, construction, upgrade, maintenance, and repair of high voltage transmission lines, substations, and lower voltage overhead and underground distribution systems; storm repair and restoration services; and commercial services comprising installation, maintenance, and repair of commercial wiring. In addition, the company mines, processes, and sells natural sand proppant used for hydraulic fracturing; buys processed sand from suppliers on the spot market for resale; and provides logistics solutions to facilitate delivery of frac sand products. Further, it offers contract land and directional drilling services; and rig moving services. Additionally, the company offers aviation services, equipment rental, remote accommodation, and equipment manufacturing services. It serves government-funded, private, public investor-owned, and co-operative utilities; independent oil and natural gas producers; and land-based drilling contractors. The company was formerly known as Mammoth Energy Partners LP and changed its name to Mammoth Energy Services, Inc. in October 2016. Mammoth Energy Services, Inc. was founded in 2014 and is headquartered in Oklahoma City, Oklahoma.