KLX Energy Services (NASDAQ:KLXE) versus Baker Hughes (NASDAQ:BKR) Financial Survey

Baker Hughes (NASDAQ:BKR) and KLX Energy Services (NASDAQ:KLXE) are both energy companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, institutional ownership and profitability.

Insider and Institutional Ownership

92.1% of Baker Hughes shares are held by institutional investors. Comparatively, 42.7% of KLX Energy Services shares are held by institutional investors. 0.3% of Baker Hughes shares are held by company insiders. Comparatively, 5.3% of KLX Energy Services shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Baker Hughes and KLX Energy Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Baker Hughes	9.33%	14.26%	6.58%
KLX Energy Services	-11.90%	N/A	-16.89%

Valuation and Earnings

This table compares Baker Hughes and KLX Energy Services”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Baker Hughes	$27.73 billion	2.13	$2.59 billion	$2.60	23.00
KLX Energy Services	$709.30 million	0.06	-$53.00 million	($4.30)	-0.58

Baker Hughes has higher revenue and earnings than KLX Energy Services. KLX Energy Services is trading at a lower price-to-earnings ratio than Baker Hughes, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and recommmendations for Baker Hughes and KLX Energy Services, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Baker Hughes	0	2	20	0	2.91
KLX Energy Services	1	1	0	0	1.50

Baker Hughes currently has a consensus price target of $59.61, suggesting a potential downside of 0.34%. Given Baker Hughes’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Baker Hughes is more favorable than KLX Energy Services.

Volatility and Risk

Baker Hughes has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500. Comparatively, KLX Energy Services has a beta of 0.4, indicating that its stock price is 60% less volatile than the S&P 500.

Summary

Baker Hughes beats KLX Energy Services on 13 of the 14 factors compared between the two stocks.

About Baker Hughes

Baker Hughes Company provides a portfolio of technologies and services to energy and industrial value chain worldwide. The company operates through Oilfield Services & Equipment (OFSE) and Industrial & Energy Technology (IET) segments. The OFSE segment designs and manufactures products and provides related services, including exploration, appraisal, development, production, rejuvenation, and decommissioning for onshore and offshore oilfield operations. This segment also provides drilling services, drill bits, and drilling and completions fluids; completions, intervention, measurements, pressure pumping, and wireline services; artificial lift systems, and oilfield and industrial chemicals; subsea projects and services, flexible pipe systems, and surface pressure control systems; and integrated well services and solutions. It serves oil and natural gas companies; the United States and international independent oil and natural gas companies; national or state-owned oil companies; engineering, procurement, and construction contractors; geothermal companies; and other oilfield service companies. The IET segment provides gas technology equipment, including drivers, driven equipment, flow control, and turnkey solutions for the mechanical-drive, compression, and power-generation applications; and energy sectors, such as oil and gas, LNG operations, petrochemical, and carbon solutions. This segment also provides rack-based vibration monitoring equipment and sensors; integrated asset performance management products; inspection services; pumps, valves, and gears; precision sensors and instrumentation, and condition monitoring solutions. It serves upstream, midstream, downstream, onshore, offshore, and small and large scale customers. The company was formerly known as Baker Hughes, a GE company and changed its name to Baker Hughes Company in October 2019. Baker Hughes Company was incorporated in 2016 and is based in Houston, Texas.

About KLX Energy Services

KLX Energy Services Holdings, Inc. provides drilling, completions, production, and well intervention services and products to the onshore oil and gas producing regions of the United States. The company operates through three segments: Southwest, Rocky Mountains, and Northeast/Mid-Con. It provides directional drilling services; downhole navigational and rental tools businesses and support services, including well planning, site supervision, accommodation rentals, and other drilling rentals; and various technologies, including gamma ray, azimuthal gamma ray, real-time continuous inclination and azimuth, rotary steerable, pressure-while-drilling, mode shifting, stick-slip and destructive dynamics, dynamic sequencing and real-time shock, and vibration modules. The company also offers coiled tubing and nitrogen services; wireline services, including pump down perforating, logging, and pipe recover; pressure control products and services; wellhead and hydraulic fracturing rental products and services; flowback and testing services; thru-tubing technologies and services; rig assist snubbing services; cementing products and services; acidizing and pressure pumping services; and downhole completion tools, such as toe sleeves, wet shoe cementing bypass subs, composite plugs, dissolvable plugs, liner hangers, stage cementing tools, inflatables, float and casing equipment, and retrievable completion tools. In addition, it provides production services comprising maintenance-related intervention services; production blow out preventers; mechanical wireline services; slick line services; hydro-testing services; premium tubulars; and other specialized production tools. Further, the company provides intervention services consisting of technicians and equipment that are focused on providing customers engineered solutions to downhole complications. KLX Energy Services Holdings, Inc. was incorporated in 2018 and is headquartered in Houston, Texas.