The rising demand for oil & gas equipment and services, owing to increased extraction activities across the major oil-producing countries, is expected to drive the industry’s long-term growth. Both Schlumberger Limited (NYSE:SLB) and Baker Hughes Company (NYSE:BKR) are well-placed to benefit from the industry trends. But which of these stocks is a better investment now? Read more to find out.Schlumberger Limited (SLB) supplies reservoir characterization, drilling, production, and processing technology to the oil and gas industry worldwide. The Paris, France-headquartered company operates in four divisions: Digital & Integration; Reservoir Performance; Well Construction; and Production Systems. In comparison, Baker Hughes Company (BKR) in Houston, Tex., delivers a portfolio of technologies and services worldwide. The company operates through four segments: Oilfield Services (OFS); Oilfield Equipment (OFE); Turbomachinery & Process Solutions (TPS); and Digital Solutions (DS).
Increasing oil and gas extraction activities over the past few years have led to a rise in demand for oil & gas products and services globally. In addition, the need for technological advancements in drilling and the adoption of new techniques are major factors driving the growth of the oil & gas equipment industry. The global oilfield equipment market is expected to reach $144.43 billion in 2027, growing at a 2.8% CAGR. Both SLB and BKR are expected to continue benefiting from the industry tailwinds.
SLB has gained 23.5% in price over the past nine months, while BKR has returned 11.4% over this period. Also, SLB’s 29.7% gains year-to-date compare with BKR’s 14.8% returns. In terms of their past year’s performance, BKR is the winner with 57.6% gains versus SLB’s 48.4%.