Solaris Energy Infrastructure (NYSE:SEI) & Halliburton (NYSE:HAL) Head to Head Contrast

Halliburton (NYSE:HAL) and Solaris Energy Infrastructure (NYSE:SEI) are both energy companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, profitability, dividends, institutional ownership, valuation, analyst recommendations and earnings.

Institutional and Insider Ownership

85.2% of Halliburton shares are owned by institutional investors. Comparatively, 67.4% of Solaris Energy Infrastructure shares are owned by institutional investors. 0.6% of Halliburton shares are owned by company insiders. Comparatively, 20.2% of Solaris Energy Infrastructure shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Halliburton and Solaris Energy Infrastructure”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Halliburton	$22.18 billion	1.19	$1.28 billion	$2.39	13.34
Solaris Energy Infrastructure	$936.43 million	4.11	$30.17 million	$0.96	52.35

Halliburton has higher revenue and earnings than Solaris Energy Infrastructure. Halliburton is trading at a lower price-to-earnings ratio than Solaris Energy Infrastructure, indicating that it is currently the more affordable of the two stocks.

Dividends

Halliburton pays an annual dividend of $0.68 per share and has a dividend yield of 2.1%. Solaris Energy Infrastructure pays an annual dividend of $0.48 per share and has a dividend yield of 1.0%. Halliburton pays out 28.5% of its earnings in the form of a dividend. Solaris Energy Infrastructure pays out 50.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Halliburton has raised its dividend for 4 consecutive years. Halliburton is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

Halliburton has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500. Comparatively, Solaris Energy Infrastructure has a beta of 1.4, meaning that its share price is 40% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Halliburton and Solaris Energy Infrastructure, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Halliburton	1	5	18	0	2.71
Solaris Energy Infrastructure	0	1	9	2	3.08

Halliburton presently has a consensus target price of $43.86, suggesting a potential upside of 37.51%. Solaris Energy Infrastructure has a consensus target price of $96.85, suggesting a potential upside of 92.70%. Given Solaris Energy Infrastructure’s stronger consensus rating and higher probable upside, analysts clearly believe Solaris Energy Infrastructure is more favorable than Halliburton.

Profitability

This table compares Halliburton and Solaris Energy Infrastructure’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Halliburton	8.90%	18.36%	7.84%
Solaris Energy Infrastructure	7.99%	14.56%	4.82%

Summary

Halliburton beats Solaris Energy Infrastructure on 11 of the 18 factors compared between the two stocks.

About Halliburton

Halliburton Company provides products and services to the energy industry worldwide. It operates through two segments, Completion and Production, and Drilling and Evaluation. The Completion and Production segment offers production enhancement services that include stimulation and sand control services; cementing services, such as well bonding and casing, and casing equipment; and completion tools that offer downhole solutions and services, including well completion products and services, intelligent well completions, and service tools, as well as liner hanger, sand control, and multilateral systems. This segment also provides electrical submersible pumps, as well as artificial lift services; production solutions comprising coiled tubing, hydraulic workover units, downhole tools, and pumping and nitrogen services; pipeline and process services, such as pre-commissioning, commissioning, maintenance, and decommissioning; and specialty chemicals and services. The Drilling and Evaluation segment offers drilling fluid systems, performance additives, completion fluids, solids control, specialized testing equipment, and waste management services; drilling systems and services; wireline and perforating services consists of open-hole logging, and cased-hole and slickline; and drill bits and services comprising roller cone rock bits, fixed cutter bits, hole enlargement, and related downhole tools and services, as well as coring equipment and services. This segment also provides cloud based digital services and artificial intelligence solutions on an open architecture for subsurface insights, integrated well construction, and reservoir and production management; testing and subsea services, such as acquisition and analysis of reservoir information and optimization solutions; and project management and integrated asset management services. Halliburton Company was founded in 1919 and is based in Houston, Texas.

About Solaris Energy Infrastructure

Solaris Energy Infrastructure, Inc. is a holding company, which engages in the manufacture of patented mobile proppant management systems that unload, store, and deliver proppant to oil and natural gas well sites. Its products include Mobile Proppant and Mobile Chemical Management Systems, and Inventory Management Software. The firm’s services include field, last mile management, and transloading services. The company was founded by William A. Zartler in 2014 and is headquartered in Houston, TX.