Head to Head Survey: Subsea 7 (OTCMKTS:SUBCY) & Baker Hughes (NASDAQ:BKR)

Baker Hughes (NASDAQ:BKR) and Subsea 7 (OTCMKTS:SUBCY) are both energy companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, profitability, risk and earnings.

Valuation and Earnings

This table compares Baker Hughes and Subsea 7″s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Baker Hughes	$27.71 billion	1.71	$2.98 billion	$2.90	16.53
Subsea 7	$6.84 billion	0.80	$201.40 million	$0.89	20.28

Baker Hughes has higher revenue and earnings than Subsea 7. Baker Hughes is trading at a lower price-to-earnings ratio than Subsea 7, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and target prices for Baker Hughes and Subsea 7, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Baker Hughes	0	4	23	0	2.85
Subsea 7	0	1	1	1	3.00

Baker Hughes currently has a consensus price target of $53.29, indicating a potential upside of 11.16%. Given Baker Hughes’ higher possible upside, analysts plainly believe Baker Hughes is more favorable than Subsea 7.

Profitability

This table compares Baker Hughes and Subsea 7’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Baker Hughes	10.43%	14.22%	6.49%
Subsea 7	3.80%	6.18%	3.34%

Volatility and Risk

Baker Hughes has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500. Comparatively, Subsea 7 has a beta of 1.4, meaning that its share price is 40% more volatile than the S&P 500.

Institutional and Insider Ownership

92.1% of Baker Hughes shares are held by institutional investors. Comparatively, 0.0% of Subsea 7 shares are held by institutional investors. 0.3% of Baker Hughes shares are held by insiders. Comparatively, 1.0% of Subsea 7 shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

Baker Hughes pays an annual dividend of $0.92 per share and has a dividend yield of 1.9%. Subsea 7 pays an annual dividend of $1.16 per share and has a dividend yield of 6.4%. Baker Hughes pays out 31.7% of its earnings in the form of a dividend. Subsea 7 pays out 130.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Baker Hughes has raised its dividend for 4 consecutive years.

Summary

Baker Hughes beats Subsea 7 on 12 of the 18 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 Subsea 7

Subsea 7 S.A. delivers offshore projects and services for the energy industry worldwide. It provides subsea field development products and services, including project management, design and engineering, procurement, fabrication, survey, installation, and commissioning of production facilities on the seabed and the tie-back of its facilities to fixed or floating platforms or to the shore. The company also offers engineering, procurement, commissioning, and installation of subsea umbilicals, risers, and flowlines; inspection, repair, maintenance, remote intervention, and integrity management of subsea infrastructure services; conventional services comprising fabrication, installation, extension, and refurbishment of fixed and floating platforms and associated pipelines in shallow water; and hook-up services. In addition, it operates heavy lifting operations and heavy transportation services for renewables structures; and installs offshore wind turbine foundations, as well as engages in the decommissioning of redundant offshore structures. Further, the company provides remotely operated vehicles (ROVs) and tooling services to support exploration and production activities, as well as engineering and advisory services for customers in the oil and gas, renewables, and utilities industries. The company was incorporated in 1993 and is based in Luxembourg, Luxembourg.