Head to Head Survey: Schlumberger (SLB) vs. CARBO Ceramics (CRR)

Schlumberger (NYSE: SLB) and CARBO Ceramics (NYSE:CRR) are both energy companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, risk, analyst recommendations, profitability, valuation and earnings.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Schlumberger and CARBO Ceramics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Schlumberger 0 7 22 0 2.76
CARBO Ceramics 1 3 1 0 2.00

Schlumberger presently has a consensus target price of $78.63, indicating a potential upside of 0.84%. CARBO Ceramics has a consensus target price of $11.20, indicating a potential downside of 7.89%. Given Schlumberger’s stronger consensus rating and higher possible upside, analysts plainly believe Schlumberger is more favorable than CARBO Ceramics.

Institutional and Insider Ownership

79.3% of Schlumberger shares are owned by institutional investors. Comparatively, 74.4% of CARBO Ceramics shares are owned by institutional investors. 0.4% of Schlumberger shares are owned by company insiders. Comparatively, 16.2% of CARBO Ceramics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

Schlumberger pays an annual dividend of $2.00 per share and has a dividend yield of 2.6%. CARBO Ceramics does not pay a dividend. Schlumberger 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. CARBO Ceramics has increased its dividend for 7 consecutive years.

Profitability

This table compares Schlumberger and CARBO Ceramics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Schlumberger 1.86% 4.42% 2.37%
CARBO Ceramics -79.49% -16.48% -13.73%

Volatility & Risk

Schlumberger has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500. Comparatively, CARBO Ceramics has a beta of 2, indicating that its share price is 100% more volatile than the S&P 500.

Valuation and Earnings

This table compares Schlumberger and CARBO Ceramics’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Schlumberger $27.81 billion 3.88 -$1.69 billion $0.39 199.92
CARBO Ceramics $103.05 million 3.20 -$80.12 million ($9.41) -1.29

CARBO Ceramics has lower revenue, but higher earnings than Schlumberger. CARBO Ceramics is trading at a lower price-to-earnings ratio than Schlumberger, indicating that it is currently the more affordable of the two stocks.

Summary

Schlumberger beats CARBO Ceramics on 12 of the 17 factors compared between the two stocks.

Schlumberger Company Profile

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.

CARBO Ceramics Company Profile

CARBO Ceramics Inc. is a technology company that provides products and services to the global oil and gas and industrial markets. The Company operates through two segments: Oilfield Technologies and Services, and Environmental Products and Services. The Company’s oilfield technologies and services segment includes the manufacturing and selling of proppant products for use primarily in the hydraulic fracturing of oil and natural gas wells, Fracpro software for the design of fracture treatments, and StrataGen consulting services for the optimizing of well completions. The Company’s environmental products and services segment is intended to protect operators’ assets, minimize environmental risks, and lower lease operating expense (LOE). The Company, through Asset Guard Products Inc. (AGPI), provides spill prevention, containment and countermeasure systems for the oil and gas industry. The Company manufactures various ceramic proppants.

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