Schlumberger Limited. (SLB), Halliburton Company (HAL), Baker Hughes Incorporated (BHI): Which Oil Services Company Is Right for You?

Baker Hughes Incorporated (NYSE:BHI) trades for 16.1 times 2013’s consensus projection of $3.05 per share, in line with Schlumberger Limited. (NYSE:SLB) as it doesn’t carry quite as much risk as Halliburton Company (NYSE:HAL). The company’s earnings are projected to rise to $4.13 and $4.80 over the next two years, for a 3-year growth rate of 17.2% (shocking how similar all of these companies are, huh?).

Thoughts

As things stand right now, if you don’t mind the added risk of being dependent on one market and having legal issues hanging over their head, Halliburton Company (NYSE:HAL) is certainly the “cheapest” of the three. Personally, I prefer the strength that comes with Schlumberger Limited. (NYSE:SLB) being the biggest in the industry, not to mention the geographical diversity of their operations and their best-in-breed dividend yield.

Having said all of that, one of the best things about earnings season is that projections and valuations can literally change overnight. Other than the obvious implications of meeting or missing the estimates, keep an eye on any discussion of increased activity in either the Gulf of Mexico or in frontier markets such as Africa for clues as to the direction of these companies over the next few years.

Matthew Frankel has no position in any stocks mentioned. The Motley Fool recommends Halliburton.

The article Which Oil Services Company Is Right for You? originally appeared on Fool.com.

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