Schlumberger (NYSE: SLB) and Targa Pipeline Partners (NYSE:APL) are both energy companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.
Valuation and Earnings
This table compares Schlumberger and Targa Pipeline Partners’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Schlumberger||$30.44 billion||3.04||-$1.51 billion||($1.14)||-58.64|
|Targa Pipeline Partners||N/A||N/A||N/A||$0.89||30.02|
This table compares Schlumberger and Targa Pipeline Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Targa Pipeline Partners||14.09%||17.87%||9.56%|
Schlumberger pays an annual dividend of $2.00 per share and has a dividend yield of 3.0%. Targa Pipeline Partners does not pay a dividend. Schlumberger pays out -175.4% of its earnings in the form of a dividend.
Insider and Institutional Ownership
80.0% of Schlumberger shares are held by institutional investors. 0.5% of Schlumberger shares are held 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.
This is a breakdown of recent ratings and recommmendations for Schlumberger and Targa Pipeline Partners, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Targa Pipeline Partners||0||0||0||0||N/A|
Schlumberger currently has a consensus price target of $80.71, indicating a potential upside of 20.73%. Given Schlumberger’s higher possible upside, equities analysts plainly believe Schlumberger is more favorable than Targa Pipeline Partners.
Schlumberger beats Targa Pipeline Partners on 7 of the 12 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.
Targa Pipeline Partners Company Profile
Targa Pipeline Partners, L.P. (the Partnership), formerly Atlas Pipeline Partners, L.P., was formed by its parent, Targa Resources Corp., to own, operate, acquire and develop a diversified portfolio of complementary midstream energy assets. The Partnership is a provider of midstream natural gas, natural gas liquids (NGL), terminaling and crude oil gathering services in the United States. The Partnership is engaged in the business of gathering, compressing, treating, processing and selling natural gas; storing, fractionating, treating, transporting and selling NGLs and NGL products; gathering, storing and terminaling crude oil; and storing, terminaling and selling refined petroleum products.
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