Comparing Noble (NE) and Halliburton (NYSE:HAL)

Halliburton (NYSE: HAL) and Noble (NYSE:NE) are both oils/energy companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.

Volatility & Risk

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Halliburton has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500. Comparatively, Noble has a beta of 2.2, indicating that its share price is 120% more volatile than the S&P 500.

Dividends

Halliburton pays an annual dividend of $0.72 per share and has a dividend yield of 1.4%. Noble does not pay a dividend. Halliburton pays out 59.0% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of recent recommendations for Halliburton and Noble, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Halliburton 0 4 19 0 2.83
Noble 5 10 3 0 1.89

Halliburton presently has a consensus target price of $58.70, indicating a potential upside of 16.91%. Noble has a consensus target price of $4.64, indicating a potential upside of 9.12%. Given Halliburton’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Halliburton is more favorable than Noble.

Profitability

This table compares Halliburton and Noble’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Halliburton -2.25% 11.95% 4.20%
Noble -41.76% -4.61% -2.55%

Institutional & Insider Ownership

80.3% of Halliburton shares are owned by institutional investors. Comparatively, 87.7% of Noble shares are owned by institutional investors. 0.5% of Halliburton shares are owned by insiders. Comparatively, 1.0% of Noble shares are owned 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.

Valuation & Earnings

This table compares Halliburton and Noble’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Halliburton $20.62 billion 2.13 -$463.00 million $1.22 41.16
Noble $1.24 billion 0.85 -$516.51 million ($1.14) -3.73

Halliburton has higher revenue and earnings than Noble. Noble is trading at a lower price-to-earnings ratio than Halliburton, indicating that it is currently the more affordable of the two stocks.

Summary

Halliburton beats Noble on 12 of the 16 factors compared between the two stocks.

Halliburton Company Profile

Halliburton Company provides a range of services and products to oil and natural gas companies worldwide. The company's Completion and Production segment offers production enhancement services, including stimulation and sand control services; and cementing services, such as bonding the well, well casing, and casing equipment. It also provides completion tools that offer downhole solutions and services, including well completion products and services, intelligent well completions, liner hanger systems, sand control systems, and service tools; production solutions comprising coiled tubing, hydraulic workover units, and downhole tools; and pipeline and process services, such as pre-commissioning, commissioning, maintenance, and decommissioning. In addition, this segment offers oilfield production and completion chemicals and services; and electrical submersible pumps and progressive cavity pumps, as well as artificial lift services to enhance reservoir and wellbore recovery. The company's Drilling and Evaluation segment provides drilling fluid systems, performance additives, completion fluids, solids control, specialized testing equipment, and waste management services; and drilling systems and services. It also offers wireline and perforating services, including open-hole logging, and cased-hole and slickline; and drill bits and services comprising roller cone rock bits, fixed cutter bits, hole enlargement, and related downhole tools and services, as well as coring equipment and services. In addition, this segment provides integrated exploration, drilling, and production software, as well as related professional and data management services; testing and subsea services, such as acquisition and analysis of reservoir information and optimization solutions; and project management, consulting, integrated asset management, and well control and prevention services. Halliburton Company was founded in 1919 and is based in Houston, Texas.

Noble Company Profile

Noble Corporation plc operates as an offshore drilling contractor for the oil and gas industry worldwide. It provides contract drilling services using mobile offshore drilling units. As of December 31, 2017, the company operated a fleet of 8 drill ships, 6 semisubmersibles, and 14 jack ups. Noble Corporation plc was founded in 1921 and is headquartered in London, the United Kingdom.

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