SBM Offshore (OTCMKTS:SBFFF) & Schlumberger (NYSE:SLB) Critical Comparison

SBM Offshore (OTCMKTS:SBFFF) and Schlumberger (NYSE:SLB) are both energy 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.

Institutional and Insider Ownership

37.7% of SBM Offshore shares are owned by institutional investors. Comparatively, 82.0% of Schlumberger shares are owned by institutional investors. 0.3% of Schlumberger shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for SBM Offshore and Schlumberger, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SBM Offshore	0	0	0	0	N/A
Schlumberger	0	1	18	0	2.95

Schlumberger has a consensus price target of $63.19, suggesting a potential upside of 41.37%. Given Schlumberger’s higher possible upside, analysts clearly believe Schlumberger is more favorable than SBM Offshore.

Earnings & Valuation

This table compares SBM Offshore and Schlumberger”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SBM Offshore	N/A	N/A	N/A	$1.13	15.27
Schlumberger	$33.14 billion	1.92	$4.20 billion	$3.06	14.61

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

Profitability

This table compares SBM Offshore and Schlumberger’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SBM Offshore	N/A	N/A	N/A
Schlumberger	12.56%	21.92%	9.78%

Summary

Schlumberger beats SBM Offshore on 9 of the 10 factors compared between the two stocks.

About SBM Offshore

SBM Offshore N.V. provides floating production solutions to the offshore energy industry worldwide. It operates in two segments, Lease and Operate, and Turnkey. It engages in the design, supply, installation, operation, lease, and life extension of floating production storage and offloading (FPSO) vessels, as well as semi-submersibles, tension leg floaters, turret mooring systems, floating offshore wind, and brownfield and offshore loading terminals. The company also provides catenary anchor leg mooring (CALM) or single point mooring (SPM) terminals; and solutions for flexible flowline and subsea structure installation works. It operates a fleet of 15 FPSOs and 1 semi-submersible unit. The company was formerly known as IHC Caland and changed its name to SBM Offshore N.V. in 2005. SBM Offshore N.V. was founded in 1862 and is headquartered in Schiphol, the Netherlands.

About Schlumberger

Schlumberger Limited engages in the provision of technology for the energy industry worldwide. The company operates through four divisions: Digital & Integration, Reservoir Performance, Well Construction, and Production Systems. The company provides field development and hydrocarbon production, carbon management, and integration of adjacent energy systems; reservoir interpretation and data processing services for exploration data; and well construction and production improvement services and products. It also offers subsurface geology and fluids evaluation information; open and cased hole services; exploration and production pressure, and flow-rate measurement services; and pressure pumping, well stimulation, and coiled tubing equipment solutions. In addition, the company offers mud logging, directional drilling, measurement-while-drilling, and logging-while-drilling services, as well as engineering support services; supplies drilling fluid systems; designs, manufactures, and markets roller cone and fixed cutter drill bits; bottom-hole-assembly and borehole enlargement technologies; well cementing products and services; well planning, well drilling, engineering, supervision, logistics, procurement, and contracting of third parties, as well as drilling rig management solutions; and drilling equipment and services, as well as land drilling rigs and related services. Further, it provides artificial lift production equipment and optimization services; supplies packers, safety valves, sand control technology, and various intelligent well completions technology and equipment; designs and manufactures valves, chokes, actuators, and surface trees; and OneSubsea, an integrated solutions, products, systems, and services, including wellheads, subsea trees, manifolds and flowline connectors, control systems, connectors, and services. The company was formerly known as Socie´te´ de Prospection E´lectrique. Schlumberger Limited was founded in 1926 and is based in Houston, Texas.