TechnipFMC (NYSE:FTI – Get Free Report) and Liberty Energy (NYSE:LBRT – Get Free Report) are both energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, dividends, institutional ownership and risk.
Analyst Ratings
This is a breakdown of current recommendations and price targets for TechnipFMC and Liberty Energy, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TechnipFMC | 0 | 2 | 13 | 3 | 3.06 |
| Liberty Energy | 1 | 8 | 3 | 2 | 2.43 |
TechnipFMC presently has a consensus price target of $42.00, suggesting a potential upside of 6.30%. Liberty Energy has a consensus price target of $16.10, suggesting a potential downside of 1.98%. Given TechnipFMC’s stronger consensus rating and higher probable upside, equities analysts plainly believe TechnipFMC is more favorable than Liberty Energy.
Risk and Volatility
Earnings and Valuation
This table compares TechnipFMC and Liberty Energy”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TechnipFMC | $9.08 billion | 1.79 | $842.90 million | $2.24 | 17.64 |
| Liberty Energy | $4.32 billion | 0.62 | $316.01 million | $1.12 | 14.67 |
TechnipFMC has higher revenue and earnings than Liberty Energy. Liberty Energy is trading at a lower price-to-earnings ratio than TechnipFMC, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares TechnipFMC and Liberty Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TechnipFMC | 9.67% | 30.23% | 9.72% |
| Liberty Energy | 4.76% | 1.69% | 1.00% |
Dividends
TechnipFMC pays an annual dividend of $0.20 per share and has a dividend yield of 0.5%. Liberty Energy pays an annual dividend of $0.32 per share and has a dividend yield of 1.9%. TechnipFMC pays out 8.9% of its earnings in the form of a dividend. Liberty Energy pays out 28.6% 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. TechnipFMC has increased its dividend for 1 consecutive years and Liberty Energy has increased its dividend for 2 consecutive years. Liberty Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional and Insider Ownership
96.6% of TechnipFMC shares are owned by institutional investors. Comparatively, 98.2% of Liberty Energy shares are owned by institutional investors. 1.8% of TechnipFMC shares are owned by insiders. Comparatively, 1.9% of Liberty Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Summary
TechnipFMC beats Liberty Energy on 14 of the 18 factors compared between the two stocks.
About TechnipFMC
TechnipFMC plc engages in the energy projects, technologies, and systems and services businesses in Europe, Central Asia, North America, Latin America, the Asia Pacific, Africa, the Middle East, and internationally. It operates through two segments: Subsea and Surface Technologies. The Subsea segment engages in the design, engineering, procurement, manufacturing, fabrication, installation, and life of field services for subsea systems, subsea field infrastructure, and subsea pipe systems used in oil and gas production and transportation. It provides subsea production and processing system; flexible pipe; subsea umbilicals, risers, and flowlines; vessels; robotics; well and asset services; and Subsea Studio for optimizing the development, execution, and operation of current and future subsea fields. The Surface Technologies segment designs, manufactures, and services products and systems used in land and shallow water exploration and production of crude oil and natural gas. This segment offers drilling; surface wellheads and production trees systems; iComplete, a pressure control system; fracturing tree and manifold systems; flexible pipes; safety and integrity systems, multiphase meter modules, in-line separation and processing systems, and standard pumps; well control and integrity systems; separation and processing systems; skid systems; and flow measurement and automation solutions. It also offers planning, testing and installation, commissioning, operations, replacement and upgrade, maintenance, storage, preservation, intervention, integrity, decommissioning, and abandonment; and supplies flowline products and services. TechnipFMC plc was founded in 1884 and is headquartered in Houston, Texas.
About Liberty Energy
Liberty Energy Inc. provides hydraulic services and related technologies to onshore oil and natural gas exploration, and production companies in North America. The company offers hydraulic fracturing services, including complementary services, such as wireline services, proppant delivery solutions, field gas processing and treating, compressed natural gas (CNG) delivery, data analytics, related goods comprising sand mine operations, and technologies; and well site fueling and logistics. As of as of December 31, 2023, the company owned and operated a fleet of approximately 40 active hydraulic fracturing; and two sand mines in the Permian Basin. In addition, the company provides services primarily in the Permian Basin, the Williston Basin, the Eagle Ford Shale, the Haynesville Shale, the Appalachian Basin (Marcellus Shale and Utica Shale), the Western Canadian Sedimentary Basin, the Denver-Julesburg Basin (the DJ Basin), and the Anadarko Basin. Liberty Energy Inc. was formerly known as Liberty Oilfield Services Inc. and changed its name to Liberty Energy Inc. in April 2022. The company was founded in 2011 and is headquartered in Denver, Colorado.
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