Dawson Geophysical (NASDAQ:DWSN – Get Free Report) and Baker Hughes (NASDAQ:BKR – Get Free Report) are both energy companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, dividends and analyst recommendations.
Insider and Institutional Ownership
7.9% of Dawson Geophysical shares are owned by institutional investors. Comparatively, 92.1% of Baker Hughes shares are owned by institutional investors. 0.3% of Dawson Geophysical shares are owned by company insiders. Comparatively, 0.2% of Baker Hughes shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Dawson Geophysical and Baker Hughes”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Dawson Geophysical | $75.62 million | 1.79 | -$1.94 million | $0.15 | 29.10 |
| Baker Hughes | $27.89 billion | 2.37 | $2.59 billion | $3.13 | 21.31 |
Baker Hughes has higher revenue and earnings than Dawson Geophysical. Baker Hughes is trading at a lower price-to-earnings ratio than Dawson Geophysical, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Dawson Geophysical has a beta of -0.13, indicating that its share price is 113% less volatile than the S&P 500. Comparatively, Baker Hughes has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current recommendations for Dawson Geophysical and Baker Hughes, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Dawson Geophysical | 0 | 1 | 0 | 0 | 2.00 |
| Baker Hughes | 1 | 3 | 18 | 0 | 2.77 |
Baker Hughes has a consensus price target of $69.18, indicating a potential upside of 3.73%. Given Baker Hughes’ stronger consensus rating and higher possible upside, analysts plainly believe Baker Hughes is more favorable than Dawson Geophysical.
Profitability
This table compares Dawson Geophysical and Baker Hughes’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Dawson Geophysical | 4.91% | 26.74% | 9.15% |
| Baker Hughes | 11.17% | 14.17% | 6.24% |
Summary
Baker Hughes beats Dawson Geophysical on 10 of the 14 factors compared between the two stocks.
About Dawson Geophysical
Dawson Geophysical Company provides onshore seismic data acquisition and processing services in the United States and Canada. The company acquires and processes 2-D, 3-D, and multi-component seismic data for its clients, including oil and gas companies, and independent oil and gas operators, as well as providers of multi-client data libraries and carbon capture sequestration projects. Its seismic crews supply seismic data primarily to companies engaged in the exploration and development of oil and natural gas on land and in land-to-water transition areas, as well as potash mining industry. The company was founded in 1952 and is headquartered in Midland, Texas. Dawson Geophysical Company is a subsidiary of Wilks Brothers, LLC.
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.
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