Keane Group (NYSE:FRAC) and Schlumberger (NYSE:SLB) are both oils/energy companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, profitability, dividends, analyst recommendations, earnings, institutional ownership and valuation.

Profitability

This table compares Keane Group and Schlumberger’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Keane Group 2.24% 13.57% 6.19%
Schlumberger 6.19% 5.87% 3.07%

Dividends

Schlumberger pays an annual dividend of $2.00 per share and has a dividend yield of 5.1%. Keane Group does not pay a dividend. Schlumberger pays out 123.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a summary of current ratings and target prices for Keane Group and Schlumberger, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Keane Group 0 2 13 0 2.87
Schlumberger 1 10 11 0 2.45

Keane Group presently has a consensus price target of $17.00, indicating a potential upside of 80.47%. Schlumberger has a consensus price target of $57.16, indicating a potential upside of 45.33%. Given Keane Group’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Keane Group is more favorable than Schlumberger.

Insider and Institutional Ownership

90.5% of Keane Group shares are owned by institutional investors. Comparatively, 79.3% of Schlumberger shares are owned by institutional investors. 0.5% of Keane Group shares are owned by company insiders. Comparatively, 0.5% of Schlumberger shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Keane Group and Schlumberger’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Keane Group $2.14 billion 0.46 $59.33 million $0.92 10.24
Schlumberger $32.82 billion 1.66 $2.14 billion $1.62 24.28

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

Risk & Volatility

Keane Group has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500. Comparatively, Schlumberger has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500.

Keane Group Company Profile

Keane Group, Inc. provides integrated well completion services primarily in the United States. Its principal service offerings include horizontal and vertical fracturing, wireline perforation and logging, and engineered solutions. The company also provides cementing and drilling services; and engineering software and technical guidance for remedial cementing applications and acidizing. Its customers primarily include integrated and large independent oil and natural gas exploration and production companies. The company has 29 hydraulic fracturing fleets, 34 wireline trucks, 24 cementing pumps, and other ancillary assets located in the Permian Basin, the Marcellus Shale/Utica Shale, the Eagle Ford Formation, the Bakken Formation, and other active oil and gas basins. Keane Group, Inc. was founded in 1973 and is headquartered in Houston, Texas. Keane Group, Inc. is a subsidiary of Keane Investor Holdings LLC.

Schlumberger Company Profile

Schlumberger Limited supplies technology for reservoir characterization, drilling, production, and processing to the oil and gas industry worldwide. The company's Reservoir Characterization segment offers reservoir interpretation and data processing services; open and cased-hole, and slickline services; exploration and production pressure and flow-rate measurement services; tubing-conveyed perforating services; integrated production systems; software, consulting, information management, and IT infrastructure services; reservoir characterization, field development planning, and production enhancement consulting services; petro technical data services and training solutions; and integrated management services. Its Drilling segment designs, manufactures, and markets roller cone and fixed cutter drill bits; supplies drilling fluid systems, fluid systems and specialty equipment, production technology solutions, and engineered managed pressure and underbalanced drilling solutions; and offers environmental services and products. This segment also provides drilling and measurement, land drilling rigs, and related support services; and supplies well planning and drilling, engineering, supervision, logistics, procurement, and contracting services, as well as drilling rig management services. The company's Production segment offers well services; coiled tubing equipment; hydraulic fracturing, multistage completions, perforating, coiled tubing equipment, and services; well completion services and equipment; artificial lift production equipment and optimization services; and production management services. Its Cameron segment offers integrated subsea production systems; drilling equipment and services; onshore and offshore platform wellhead systems and processing solutions; and valve products and measurement systems. The company was formerly known as Socie´te´ de Prospection E´lectrique. Schlumberger Limited was founded in 1926 and is based in Houston, Texas.

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