Comparing Baker Hughes (NASDAQ:BKR) & Forum Energy Technologies (NYSE:FET)

Forum Energy Technologies (NYSE:FET) and Baker Hughes (NASDAQ:BKR) are both energy companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, dividends, analyst recommendations, profitability, risk, institutional ownership and valuation.

Volatility and Risk

Forum Energy Technologies has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500. Comparatively, Baker Hughes has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500.

Earnings and Valuation

This table compares Forum Energy Technologies and Baker Hughes”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Forum Energy Technologies	$791.47 million	1.11	-$9.66 million	$2.54	30.29
Baker Hughes	$27.73 billion	1.77	$2.59 billion	$2.90	17.05

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Forum Energy Technologies and Baker Hughes, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Forum Energy Technologies	1	1	0	0	1.50
Baker Hughes	0	5	16	1	2.82

Baker Hughes has a consensus target price of $70.27, indicating a potential upside of 42.14%. Given Baker Hughes’ stronger consensus rating and higher probable upside, analysts plainly believe Baker Hughes is more favorable than Forum Energy Technologies.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Forum Energy Technologies	3.46%	14.38%	5.48%
Baker Hughes	10.08%	13.55%	5.27%

Insider and Institutional Ownership

65.6% of Forum Energy Technologies shares are held by institutional investors. Comparatively, 92.1% of Baker Hughes shares are held by institutional investors. 7.7% of Forum Energy Technologies shares are held by company insiders. Comparatively, 0.2% of Baker Hughes shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Baker Hughes beats Forum Energy Technologies on 11 of the 15 factors compared between the two stocks.

About Forum Energy Technologies

Forum Energy Technologies, Inc. (NYSE: FET) designs and manufactures equipment and technologies for the global oil and natural gas industry, as well as selected industrial markets. Its products support operations across the energy lifecycle, including drilling, well completion, subsea activity and production. The company’s offerings include drilling and completions equipment, subsea products and systems, and equipment used in oilfield production. These products are designed for use in onshore and offshore environments and help customers conduct and support energy operations.

About Baker Hughes

Baker Hughes (NASDAQ: BKR) is an energy technology company that provides products and services to the oil and gas industry and other industrial markets. Its offerings include equipment and services used across the energy value chain, from exploration and production to transportation and processing. The company also develops turbomachinery, industrial equipment, digital technologies and solutions for energy and industrial applications. Its portfolio includes technologies designed to support more efficient operations and lower-emissions energy systems.