Analyzing Innovex International (NYSE:INVX) and Baker Hughes (NASDAQ:BKR)

Innovex International (NYSE:INVX) and Baker Hughes (NASDAQ:BKR) are both oils/energy companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Profitability

This table compares Innovex International and Baker Hughes’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Innovex International	12.31%	-0.73%	-0.61%
Baker Hughes	8.20%	13.77%	5.86%

Institutional and Insider Ownership

92.1% of Baker Hughes shares are owned by institutional investors. 1.7% of Innovex International shares are owned by insiders. Comparatively, 0.3% of Baker Hughes shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Innovex International has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500. Comparatively, Baker Hughes has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Innovex International and Baker Hughes, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Innovex International	1	0	0	0	1.00
Baker Hughes	0	3	17	0	2.85

Innovex International presently has a consensus price target of $15.00, indicating a potential upside of 11.94%. Baker Hughes has a consensus price target of $47.00, indicating a potential upside of 14.97%. Given Baker Hughes’ stronger consensus rating and higher possible upside, analysts clearly believe Baker Hughes is more favorable than Innovex International.

Earnings and Valuation

This table compares Innovex International and Baker Hughes”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Innovex International	$550.34 million	1.64	$600,000.00	$1.41	9.50
Baker Hughes	$27.30 billion	1.48	$1.94 billion	$2.23	18.33

Baker Hughes has higher revenue and earnings than Innovex International. Innovex International is trading at a lower price-to-earnings ratio than Baker Hughes, indicating that it is currently the more affordable of the two stocks.

Summary

Baker Hughes beats Innovex International on 11 of the 14 factors compared between the two stocks.

About Innovex International

Innovex Downhole Solutions Inc. designs, manufactures and installs mission-critical drilling & deployment, well construction, completion, production and fishing & intervention solutions to support upstream onshore and offshore activities. Innovex Downhole Solutions Inc., formerly known as Dril-Quip, is based in HOUSTON.

About Baker Hughes

Baker Hughes Company provides a portfolio of technologies and services to energy and industrial value chain worldwide. The company operates through Oilfield Services & Equipment (OFSE) and Industrial & Energy Technology (IET) segments. The OFSE segment designs and manufactures products and provides related services, including exploration, appraisal, development, production, rejuvenation, and decommissioning for onshore and offshore oilfield operations. This segment also provides drilling services, drill bits, and drilling and completions fluids; completions, intervention, measurements, pressure pumping, and wireline services; artificial lift systems, and oilfield and industrial chemicals; subsea projects and services, flexible pipe systems, and surface pressure control systems; and integrated well services and solutions. It serves oil and natural gas companies; the United States and international independent oil and natural gas companies; national or state-owned oil companies; engineering, procurement, and construction contractors; geothermal companies; and other oilfield service companies. The IET segment provides gas technology equipment, including drivers, driven equipment, flow control, and turnkey solutions for the mechanical-drive, compression, and power-generation applications; and energy sectors, such as oil and gas, LNG operations, petrochemical, and carbon solutions. This segment also provides rack-based vibration monitoring equipment and sensors; integrated asset performance management products; inspection services; pumps, valves, and gears; precision sensors and instrumentation, and condition monitoring solutions. It serves upstream, midstream, downstream, onshore, offshore, and small and large scale customers. The company was formerly known as Baker Hughes, a GE company and changed its name to Baker Hughes Company in October 2019. Baker Hughes Company was incorporated in 2016 and is based in Houston, Texas.