Schlumberger N.V. (NYSE: SLB) and National Oilwell Varco (NYSE:NOV) are both large-cap oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, earnings, dividends, profitabiliy and risk.
Valuation & Earnings
This table compares Schlumberger N.V. and National Oilwell Varco’s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Schlumberger N.V. | $28.48 billion | 3.33 | $6.28 billion | $0.13 | 526.66 |
| National Oilwell Varco | $6.80 billion | 1.85 | -$644.00 million | ($6.04) | -5.48 |
Schlumberger N.V. has higher revenue and earnings than National Oilwell Varco. National Oilwell Varco is trading at a lower price-to-earnings ratio than Schlumberger N.V., indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Schlumberger N.V. and National Oilwell Varco’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Schlumberger N.V. | 0.62% | 3.80% | 2.02% |
| National Oilwell Varco | -33.24% | -2.11% | -1.41% |
Dividends
Schlumberger N.V. pays an annual dividend of $2.00 per share and has a dividend yield of 2.9%. National Oilwell Varco pays an annual dividend of $0.20 per share and has a dividend yield of 0.6%. Schlumberger N.V. pays out 1,538.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. National Oilwell Varco pays out -3.3% of its earnings in the form of a dividend. National Oilwell Varco has increased its dividend for 6 consecutive years.
Insider & Institutional Ownership
79.2% of Schlumberger N.V. shares are owned by institutional investors. Comparatively, 91.4% of National Oilwell Varco shares are owned by institutional investors. 0.4% of Schlumberger N.V. shares are owned by insiders. Comparatively, 0.2% of National Oilwell Varco shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Volatility & Risk
Schlumberger N.V. has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500. Comparatively, National Oilwell Varco has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Schlumberger N.V. and National Oilwell Varco, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Schlumberger N.V. | 0 | 8 | 18 | 1 | 2.74 |
| National Oilwell Varco | 2 | 16 | 5 | 0 | 2.13 |
Schlumberger N.V. presently has a consensus target price of $86.04, suggesting a potential upside of 25.68%. National Oilwell Varco has a consensus target price of $38.78, suggesting a potential upside of 17.12%. Given Schlumberger N.V.’s stronger consensus rating and higher possible upside, equities analysts plainly believe Schlumberger N.V. is more favorable than National Oilwell Varco.
Summary
Schlumberger N.V. beats National Oilwell Varco on 14 of the 17 factors compared between the two stocks.
Schlumberger N.V. Company Profile
Schlumberger N.V. provides technology for reservoir characterization, drilling, production and processing to the oil and gas industry. The Company’s segments include Reservoir Characterization Group, Drilling Group, Production Group and Cameron Group. The Reservoir Characterization Group consists of the principal technologies involved in finding and defining hydrocarbon resources. The Drilling Group consists of the principal technologies involved in the drilling and positioning of oil and gas wells. The Production Group consists of the principal technologies involved in the lifetime production of oil and gas reservoirs and includes Well Services, Completions, Artificial Lift, Integrated Production Services (IPS) and Schlumberger Production Management (SPM). The Cameron Group consists of the principal technologies involved in pressure and flow control for drilling and intervention rigs, oil and gas wells and production facilities.
National Oilwell Varco Company Profile
National Oilwell Varco, Inc. is an oilfield equipment manufacturer and technology provider. The Company operates through four segments: Rig Systems, Rig Aftermarket, Wellbore Technologies and Completion & Production Solutions. The Rig Systems segment makes and supports the capital equipment and integrated systems needed to drill oil and gas wells on land and offshore. The Rig Systems segment designs, manufactures and sells land rigs, offshore drilling equipment packages, and drilling rig components. The Rig Aftermarket segment provides aftermarket products and services to support a large installed base of land and offshore rigs, and drilling rig components manufactured by the Company’s Rig Systems segment. The Wellbore Technologies segment designs, manufactures, rents and sells a range of equipment and technologies used to perform drilling operations. The Completion & Production Solutions segment integrates technologies for well completions and oil and gas production.
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