Halliburton (NYSE:HAL – Get Free Report) and Solaris Energy Infrastructure (NYSE:SEI – Get Free Report) are both energy companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, dividends and analyst recommendations.
Dividends
Halliburton pays an annual dividend of $0.68 per share and has a dividend yield of 2.1%. Solaris Energy Infrastructure pays an annual dividend of $0.48 per share and has a dividend yield of 1.0%. Halliburton pays out 28.5% of its earnings in the form of a dividend. Solaris Energy Infrastructure pays out 50.0% 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. Halliburton has raised its dividend for 4 consecutive years. Halliburton is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Analyst Recommendations
This is a summary of current recommendations for Halliburton and Solaris Energy Infrastructure, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Halliburton | 1 | 5 | 18 | 0 | 2.71 |
| Solaris Energy Infrastructure | 0 | 1 | 9 | 2 | 3.08 |
Halliburton presently has a consensus price target of $43.86, indicating a potential upside of 37.51%. Solaris Energy Infrastructure has a consensus price target of $96.85, indicating a potential upside of 92.70%. Given Solaris Energy Infrastructure’s stronger consensus rating and higher possible upside, analysts plainly believe Solaris Energy Infrastructure is more favorable than Halliburton.
Profitability
This table compares Halliburton and Solaris Energy Infrastructure’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Halliburton | 8.90% | 18.36% | 7.84% |
| Solaris Energy Infrastructure | 7.99% | 14.56% | 4.82% |
Volatility & Risk
Halliburton has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500. Comparatively, Solaris Energy Infrastructure has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500.
Earnings and Valuation
This table compares Halliburton and Solaris Energy Infrastructure”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Halliburton | $22.18 billion | 1.19 | $1.28 billion | $2.39 | 13.34 |
| Solaris Energy Infrastructure | $936.43 million | 4.11 | $30.17 million | $0.96 | 52.35 |
Halliburton has higher revenue and earnings than Solaris Energy Infrastructure. Halliburton is trading at a lower price-to-earnings ratio than Solaris Energy Infrastructure, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
85.2% of Halliburton shares are owned by institutional investors. Comparatively, 67.4% of Solaris Energy Infrastructure shares are owned by institutional investors. 0.6% of Halliburton shares are owned by insiders. Comparatively, 20.2% of Solaris Energy Infrastructure 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.
Summary
Halliburton beats Solaris Energy Infrastructure on 11 of the 18 factors compared between the two stocks.
About Halliburton
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.
About Solaris Energy Infrastructure
Solaris Energy Infrastructure, Inc. is a holding company, which engages in the manufacture of patented mobile proppant management systems that unload, store, and deliver proppant to oil and natural gas well sites. Its products include Mobile Proppant and Mobile Chemical Management Systems, and Inventory Management Software. The firm’s services include field, last mile management, and transloading services. The company was founded by William A. Zartler in 2014 and is headquartered in Houston, TX.
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