RPC (RES) vs. Schlumberger N.V. (SLB) Critical Comparison
RPC (NYSE: RES) and Schlumberger N.V. (NYSE:SLB) are both mid-cap oils/energy companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, institutional ownership, dividends, valuation, analyst recommendations, profitability and risk.
Insider and Institutional Ownership
38.2% of RPC shares are held by institutional investors. Comparatively, 79.0% of Schlumberger N.V. shares are held by institutional investors. 73.5% of RPC shares are held by insiders. Comparatively, 0.4% of Schlumberger N.V. shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
RPC pays an annual dividend of $0.11 per share and has a dividend yield of 0.6%. Schlumberger N.V. pays an annual dividend of $2.00 per share and has a dividend yield of 3.2%. RPC pays out -183.3% of its earnings in the form of a dividend. Schlumberger N.V. pays out 1,538.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. RPC has increased its dividend for 6 consecutive years and Schlumberger N.V. has increased its dividend for 4 consecutive years.
This table compares RPC and Schlumberger N.V.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares RPC and Schlumberger N.V.’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|RPC||$1.09 billion||3.86||$155.79 million||($0.06)||-322.61|
|Schlumberger N.V.||$28.48 billion||3.08||$6.27 billion||$0.13||487.35|
Schlumberger N.V. has higher revenue and earnings than RPC. RPC is trading at a lower price-to-earnings ratio than Schlumberger N.V., indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
RPC has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500. Comparatively, Schlumberger N.V. has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500.
This is a breakdown of recent ratings and recommmendations for RPC and Schlumberger N.V., as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
RPC presently has a consensus target price of $23.16, suggesting a potential upside of 19.61%. Schlumberger N.V. has a consensus target price of $85.82, suggesting a potential upside of 35.47%. Given Schlumberger N.V.’s stronger consensus rating and higher possible upside, analysts clearly believe Schlumberger N.V. is more favorable than RPC.
Schlumberger N.V. beats RPC on 12 of the 17 factors compared between the two stocks.
RPC Company Profile
RPC, Inc. (RPC) is a holding company for several oilfield services companies. The Company provides a range of specialized oilfield services and equipment primarily to independent oil and gas companies engaged in the exploration, production and development of oil and gas properties throughout the United States, including the southwest, mid-continent, Gulf of Mexico, Rocky Mountain and Appalachian regions, and in selected international markets. The Company’s segments are Technical Services and Support Services. The Technical Services segment consists primarily of pressure pumping, downhole tools, coiled tubing, snubbing, nitrogen, well control, wireline and fishing. Its Support Services include all of the services that provide equipment for customers’ use on the well site without RPC personnel and services that are provided in support of customer operations off the well site, such as classroom and computer training, and other consulting services.
Schlumberger N.V. 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.
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