Financial Survey: Schlumberger N.V. (SLB) vs. The Competition

Schlumberger N.V. (NYSE: SLB) is one of 55 publicly-traded companies in the “Oil Related Services and Equipment” industry, but how does it compare to its peers? We will compare Schlumberger N.V. to similar companies based on the strength of its valuation, institutional ownership, profitability, dividends, earnings, risk and analyst recommendations.

Insider & Institutional Ownership

79.1% of Schlumberger N.V. shares are held by institutional investors. Comparatively, 64.4% of shares of all “Oil Related Services and Equipment” companies are held by institutional investors. 0.4% of Schlumberger N.V. shares are held by company insiders. Comparatively, 12.4% of shares of all “Oil Related Services and Equipment” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Schlumberger N.V. and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Schlumberger N.V. 1.86% 4.42% 2.37%
Schlumberger N.V. Competitors -12.46% -5.77% -3.38%

Analyst Ratings

This is a summary of recent recommendations for Schlumberger N.V. and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Schlumberger N.V. 0 8 21 1 2.77
Schlumberger N.V. Competitors 409 2092 2964 115 2.50

Schlumberger N.V. presently has a consensus price target of $79.21, suggesting a potential upside of 20.49%. As a group, “Oil Related Services and Equipment” companies have a potential upside of 22.53%. Given Schlumberger N.V.’s peers higher possible upside, analysts plainly believe Schlumberger N.V. has less favorable growth aspects than its peers.

Risk & Volatility

Schlumberger N.V. has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500. Comparatively, Schlumberger N.V.’s peers have a beta of 1.61, indicating that their average stock price is 61% more volatile than the S&P 500.

Valuation & Earnings

This table compares Schlumberger N.V. and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Schlumberger N.V. $27.81 billion -$1.69 billion 168.57
Schlumberger N.V. Competitors $2.00 billion -$345.71 million -672.92

Schlumberger N.V. has higher revenue, but lower earnings than its peers. Schlumberger N.V. is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Dividends

Schlumberger N.V. pays an annual dividend of $2.00 per share and has a dividend yield of 3.0%. Schlumberger N.V. pays out 512.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Oil Related Services and Equipment” companies pay a dividend yield of 2.8% and pay out -93.2% of their earnings in the form of a dividend. Schlumberger N.V. has raised its dividend for 6 consecutive years.

Summary

Schlumberger N.V. beats its peers on 10 of the 15 factors compared.

About Schlumberger N.V.

Schlumberger N.V. provides technology for reservoir characterization, drilling, production and processing to the oil and gas industry. The Company’s segments include Reservoir Characterization Group, Drilling Group, Production Group and Cameron Group. The Reservoir Characterization Group consists of the principal technologies involved in finding and defining hydrocarbon resources. The Drilling Group consists of the principal technologies involved in the drilling and positioning of oil and gas wells. The Production Group consists of the principal technologies involved in the lifetime production of oil and gas reservoirs and includes Well Services, Completions, Artificial Lift, Integrated Production Services (IPS) and Schlumberger Production Management (SPM). The Cameron Group consists of the principal technologies involved in pressure and flow control for drilling and intervention rigs, oil and gas wells and production facilities.

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