Contrasting Drilling Tools International (NASDAQ:DTI) & SLB (NYSE:SLB)

SLB (NYSE:SLB) and Drilling Tools International (NASDAQ:DTI) are both energy companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, risk, valuation, institutional ownership, analyst recommendations and earnings.

Institutional & Insider Ownership

82.0% of SLB shares are held by institutional investors. Comparatively, 2.8% of Drilling Tools International shares are held by institutional investors. 0.2% of SLB shares are held by company insiders. Comparatively, 56.5% of Drilling Tools International shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares SLB and Drilling Tools International”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SLB	$35.71 billion	1.88	$3.37 billion	$2.37	18.87
Drilling Tools International	$159.63 million	0.78	-$3.76 million	($0.12)	-29.33

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

Risk and Volatility

SLB has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500. Comparatively, Drilling Tools International has a beta of -0.34, meaning that its stock price is 134% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for SLB and Drilling Tools International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SLB	1	3	16	3	2.91
Drilling Tools International	1	0	0	1	2.50

SLB currently has a consensus target price of $53.16, indicating a potential upside of 18.89%. Given SLB’s stronger consensus rating and higher possible upside, analysts plainly believe SLB is more favorable than Drilling Tools International.

Profitability

This table compares SLB and Drilling Tools International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SLB	9.45%	17.45%	8.11%
Drilling Tools International	-2.36%	1.88%	1.01%

Summary

SLB beats Drilling Tools International on 14 of the 15 factors compared between the two stocks.

About SLB

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.

About Drilling Tools International

Drilling Tools International Corporation provides oilfield equipment and services to oil and natural gas sectors in North America, Europe, and the Middle East. It offers downhole tool rentals, machining, and inspection services to support the global drilling and wellbore construction industry. The company also provides products are bottom hole assembly components, such as stabilizers, subs, non-magnetic and steel drill collars, hole openers, and roller reamers, as well as drill pipe and drill pipe accessories; ancillary equipment and handling tools to support its rental platform, including float valves, ring gauges, tool baskets, lift bail, lift subs, mud magnets, elevators, bracket and bail assemblies, slips, tongs, stabbing guides and safety clamps; and blowout preventers, and pressure control accessory equipment. In addition, it offers tool rental services, which consists of rental, inspection, machining, and repair services; rents downhole drilling tools used in horizontal and directional drilling of oil and natural gas; rents kellys, pip joints, work strings; maintains a fleet of rental equipment consisting of drill collars, stabilizers, crossover subs, wellbore conditioning tools, drill pipe, hevi-wate drill pipe, and tubing; rents surface control equipment, such as blowout preventers and handling tools; and provides downhole products for producing wells. Drilling Tools International Corporation is headquartered in Houston, Texas.