Fairmount Santrol (NYSE: FMSA) and Baker Hughes A GE (NYSE:BHI) are both industrial products companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, risk, institutional ownership, earnings, profitability, valuation and analyst recommendations.
Risk & Volatility
Fairmount Santrol has a beta of 2.11, meaning that its stock price is 111% more volatile than the S&P 500. Comparatively, Baker Hughes A GE has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500.
This is a breakdown of current ratings and price targets for Fairmount Santrol and Baker Hughes A GE, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Baker Hughes A GE||1||11||6||0||2.28|
Fairmount Santrol presently has a consensus price target of $6.31, suggesting a potential upside of 28.71%. Baker Hughes A GE has a consensus price target of $59.44, suggesting a potential upside of 3.05%. Given Fairmount Santrol’s stronger consensus rating and higher possible upside, analysts clearly believe Fairmount Santrol is more favorable than Baker Hughes A GE.
Earnings & Valuation
This table compares Fairmount Santrol and Baker Hughes A GE’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Fairmount Santrol||$535.01 million||2.05||-$140.19 million||$0.06||81.67|
|Baker Hughes A GE||N/A||N/A||N/A||($2.70)||-21.36|
Baker Hughes A GE has lower revenue, but higher earnings than Fairmount Santrol. Baker Hughes A GE is trading at a lower price-to-earnings ratio than Fairmount Santrol, indicating that it is currently the more affordable of the two stocks.
Baker Hughes A GE pays an annual dividend of $0.68 per share and has a dividend yield of 1.2%. Fairmount Santrol does not pay a dividend. Baker Hughes A GE pays out -25.2% of its earnings in the form of a dividend.
Institutional & Insider Ownership
75.5% of Fairmount Santrol shares are owned by institutional investors. Comparatively, 91.3% of Baker Hughes A GE shares are owned by institutional investors. 9.8% of Fairmount Santrol shares are owned by insiders. Comparatively, 0.7% of Baker Hughes A GE shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This table compares Fairmount Santrol and Baker Hughes A GE’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Baker Hughes A GE||-5.08%||-1.59%||-2.98%|
Fairmount Santrol beats Baker Hughes A GE on 10 of the 13 factors compared between the two stocks.
About Fairmount Santrol
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.
About Baker Hughes A GE
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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