Analyzing Halliburton (HAL) and Geospace Technologies (NASDAQ:GEOS)

Halliburton (NYSE: HAL) and Geospace Technologies (NASDAQ:GEOS) are both energy companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, profitability, risk, analyst recommendations and dividends.

Profitability

This table compares Halliburton and Geospace Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Halliburton 1.13% 6.93% 2.47%
Geospace Technologies -77.04% -26.21% -25.12%

Valuation and Earnings

This table compares Halliburton and Geospace Technologies’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Halliburton $15.89 billion 2.88 -$5.76 billion $0.24 218.17
Geospace Technologies $73.72 million 2.75 -$56.79 million ($4.32) -3.46

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

Risk and Volatility

Halliburton has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500. Comparatively, Geospace Technologies has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500.

Dividends

Halliburton pays an annual dividend of $0.72 per share and has a dividend yield of 1.4%. Geospace Technologies does not pay a dividend. Halliburton pays out 300.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Insider and Institutional Ownership

79.9% of Halliburton shares are held by institutional investors. Comparatively, 76.3% of Geospace Technologies shares are held by institutional investors. 0.5% of Halliburton shares are held by insiders. Comparatively, 3.9% of Geospace Technologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for Halliburton and Geospace Technologies, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Halliburton 0 2 21 0 2.91
Geospace Technologies 0 0 0 0 N/A

Halliburton currently has a consensus target price of $55.72, suggesting a potential upside of 6.42%. Given Halliburton’s higher possible upside, equities analysts plainly believe Halliburton is more favorable than Geospace Technologies.

Summary

Halliburton beats Geospace Technologies on 11 of the 15 factors compared between the two stocks.

Halliburton Company Profile

Halliburton Company provides services and products to the upstream oil and natural gas industry throughout the lifecycle of the reservoir, from locating hydrocarbons and managing geological data, to drilling and formation evaluation, well construction and completion, and optimizing production throughout the life of the field. It operates through two segments: the Completion and Production segment, and the Drilling and Evaluation segment. The Completion and Production segment delivers cementing, stimulation, intervention, pressure control, specialty chemicals, artificial lift and completion services. The Drilling and Evaluation segment provides field and reservoir modeling, drilling, evaluation and wellbore placement solutions that enable customers to model, measure, drill and optimize their well construction activities. It serves national and independent oil and natural gas companies. As of December 31, 2016, it had conducted business in approximately 70 countries around the world.

Geospace Technologies Company Profile

Geospace Technologies Corporation designs and manufactures instruments and equipment used by the oil and gas industry to acquire seismic data in order to locate, characterize and monitor hydrocarbon producing reservoirs. The Company also designs and manufactures non-seismic products, including industrial products, offshore cables and imaging equipment. The Company operates through two segments: Seismic and Non-Seismic. The Company’s Seismic product segments include traditional exploration products, wireless exploration products and reservoir products. Its seismic product lines consist of land and marine nodal data acquisition systems, permanent land and seabed reservoir monitoring products and services, geophones and geophone strings, hydrophones, leader wire, connectors, telemetry cables, marine streamer retrieval and steering devices and various other products. The Company’s Non-Seismic product segments include imaging and industrial products.

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