Fairmount Santrol Holdings (NYSE: FMSA) and Baker Hughes A GE (NYSE:BHI) are both oil related services and equipment – nec companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, dividends, profitability, risk and institutional ownership.
Institutional & Insider Ownership
83.2% of Fairmount Santrol Holdings shares are held by institutional investors. Comparatively, 91.3% of Baker Hughes A GE shares are held by institutional investors. 9.8% of Fairmount Santrol Holdings shares are held by company insiders. Comparatively, 0.7% of Baker Hughes A GE shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Volatility & Risk
Fairmount Santrol Holdings has a beta of 2.06, meaning that its share price is 106% more volatile than the S&P 500. Comparatively, Baker Hughes A GE has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500.
This is a breakdown of current ratings and recommmendations for Fairmount Santrol Holdings and Baker Hughes A GE, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Fairmount Santrol Holdings||1||8||9||0||2.44|
|Baker Hughes A GE||1||12||7||0||2.30|
Fairmount Santrol Holdings presently has a consensus target price of $6.44, suggesting a potential upside of 31.43%. Baker Hughes A GE has a consensus target price of $60.33, suggesting a potential upside of 4.60%. Given Fairmount Santrol Holdings’ stronger consensus rating and higher possible upside, research analysts clearly believe Fairmount Santrol Holdings is more favorable than Baker Hughes A GE.
Valuation and Earnings
This table compares Fairmount Santrol Holdings and Baker Hughes A GE’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Fairmount Santrol Holdings||$535.01 million||2.05||-$140.19 million||$0.05||98.00|
|Baker Hughes A GE||N/A||N/A||N/A||($2.70)||-21.36|
Baker Hughes A GE has higher revenue, but lower earnings than Fairmount Santrol Holdings. Baker Hughes A GE is trading at a lower price-to-earnings ratio than Fairmount Santrol Holdings, indicating that it is currently the more affordable of the two stocks.
This table compares Fairmount Santrol Holdings and Baker Hughes A GE’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Fairmount Santrol Holdings||1.69%||4.05%||0.86%|
|Baker Hughes A GE||-5.08%||-1.59%||-2.98%|
Baker Hughes A GE pays an annual dividend of $0.68 per share and has a dividend yield of 1.2%. Fairmount Santrol Holdings does not pay a dividend. Baker Hughes A GE pays out -25.2% of its earnings in the form of a dividend.
Fairmount Santrol Holdings beats Baker Hughes A GE on 10 of the 13 factors compared between the two stocks.
Fairmount Santrol Holdings Company Profile
Fairmount Santrol Holdings Inc. is a provider of sand-based proppant solutions. The Company operates through two segments: Proppant Solutions, and Industrial & Recreational (I&R) Products. Its Proppant Solutions segment provides sand-based proppants for use in hydraulic fracturing operations throughout the United States and Canada, Argentina, Mexico, China, northern Europe and the United Arab Emirates. Its I&R segment provides raw, coated, and custom blended sands to the foundry, building products, glass, turf and landscape, and filtration industries in North America. Its asset base includes approximately 800 million tons of proven and probable mineral reserves. As of March 2017, the Company had 10 sand processing facilities with 16.8 million tons of annual sand processing capacity. Its coating facilities include operations in Mexico, Denmark and China, through which it serves international oil and gas markets.
Baker Hughes A GE Company Profile
Baker Hughes, a GE Company is an oil and gas company. The Company is a provider of integrated oilfield products, services and digital solutions. The Company’s products and services include upstream, midstream, downstream, industrial and digital. The Company’s upstream, which includes evaluation, drilling, completions and production. Midstream enables the power and compression efficiency for LNG and pipeline and storage. Downstream builds reliability and safety into process operations that includes refining and petrochemical and fertilizer solutions. The company’s industrial solutions offers power generation, to advanced control systems and sensing technology that power industrial facilities. Digital transformation integrates data on an open platform with security and scale. The digital transformation enables field services with real-time insights. The Company’s technology delivers capacities in smaller footprints.
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