Halliburton Company (HAL), Schlumberger Limited. (SLB), National-Oilwell Varco, Inc. (NOV): Which Oil Play Is the Best Bet for Profits?

Recently priced at $42.37, Halliburton Company (NYSE:HAL) provides the cheapest stock option for interested investors while boasting an appreciation trend. The company continues to focus on deep-water, unconventional and mature field resources. The company’s strength lies in generating high net income by minimizing costs and making profitable investment decisions. By contrast, Schlumberger Limited. (NYSE:SLB) and National-Oilwell Varco, Inc. (NYSE:NOV) both strive to maintain sales growth, and even more so net income growth.

National-Oilwell Varco, Inc. (NYSE:NOV), along with its competitors, does not have a monumental amount of debt that needs to be serviced. This makes a strong case for the reinvestment of its operating margins. On the flipside, Schlumberger Limited. (NYSE:SLB) earns the highest net income, making the company an outright winner for investors. However, there is an alarming sign for Halliburton — its inconsistency being shown in the ROE metric for the last 10 years.

Final thoughts

National-Oilwell Varco, Inc. (NYSE:NOV) is providing a strong indication of its potential, but its lack of international footing when compared to Schlumberger and Halliburton make it less attractive than its peers. While Schlumberger Limited. (NYSE:SLB) is suffering in the North American market and actually does not have major growth prospects, Halliburton Company (NYSE:HAL) is continuing to strive in the difficult market conditions as the company continues to reduce its costs and capitalize on international markets. With the inclusion of Connecticut Natural Gas in its operations and continued share price growth,  Halliburton seems to be a solid buy.

The article Which Oil Play Is the Best Bet for Profits? originally appeared on Fool.com and is written by Marina Avilkina.

Marina Avilkina has no position in any stocks mentioned. The Motley Fool recommends Halliburton and National Oilwell Varco. The Motley Fool owns shares of National Oilwell Varco. Marina is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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