Will Schlumberger (USA Stocks:SLB) investors shift to Vanguard (USA Stocks:VTI)?

SLB Stock

USD 52.64 0.35 0.67%

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As many rational traders are trying to avoid energy equipment & services space, it makes sense to go over Schlumberger NV a little further and understand how it stands against Vanguard Total and other similar entities. We are going to analyze some of the competitive aspects of both Schlumberger and Vanguard.

Published over two weeks ago

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By analyzing existing essential indicators between Schlumberger and Vanguard, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Vanguard with a short position in Schlumberger. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Schlumberger has an asset utilization ratio of 55.24 percent. This suggests that the company is making $0.55 for each dollar of assets. An increasing asset utilization means that Schlumberger NV is more efficient with each dollar of assets it utilizes for everyday operations.

Will Schlumberger (USA Stocks:SLB) investors shift to Vanguard (USA Stocks:VTI)?

Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Schlumberger or Netflix is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

Understending Schlumberger dividends

A dividend is the distribution of a portion of Schlumberger earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Schlumberger dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Schlumberger one year expected dividend income is about USD0.38 per share.

Investing in dividend-paying stocks, such as Schlumberger NV is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Schlumberger must own a stock before its ex-dividend date to receive its next dividend.

This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Schlumberger. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Schlumberger's Liquidity

Schlumberger financial leverage refers to using borrowed capital as a funding source to finance Schlumberger NV ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Schlumberger financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Schlumberger's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.

It is good to see analyst projects for Schlumberger, but it might be worth checking our own buy vs. sell analysis

Correlation Between Schlumberger and Netflix

In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Schlumberger together with similar or unrelated positions with a negative correlation. For example, you can also add Netflix to your portfolio. If Netflix is not perfectly correlated to Schlumberger it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Schlumberger, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.

Please check pair correlation details between SLB and NFLX for more information.

Schlumberger exotic insider transaction detected

Legal trades by Schlumberger insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:

Schlumberger insider trading alert for general transaction of rsu (restricted stock unit) by Rando Bejar Carmen, Chief People Officer, on 13th of August 2022. This event was filed by Schlumberger Limited with SEC on 2022-05-02. Initial filing of beneficial ownership - SEC Form 3 [view details]

Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

An Additional Perspective On Schlumberger NV

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me now go over Schlumberger revenue. Based on the latest financial disclosure, Schlumberger NV reported 22.93 B of revenue. This is 53.4% lower than that of the Energy Equipment & Services sector and significantly higher than that of the Energy industry. The revenue for all United States stocks is 143.02% lower than that of the entity. As for Vanguard Total we see revenue of 15.64 B, which is 394.04% higher than that of the Energy

	Schlumberger	22.93 Billion
	Sector	3.17 Billion
	Vanguard	15.64 Billion

22.9 B

Schlumberger

Sector

15.6 B

Vanguard

Will Schlumberger continue to rise?

The potential upside is down to 3.97 as of today. Schlumberger NV currently demonstrates below-average downside deviation. It has Information Ratio of 0.13 and Jensen Alpha of 0.33. However, we advise investors to further question Schlumberger NV expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Schlumberger's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Schlumberger's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Final Take On Schlumberger

Whereas some other companies within the oil & gas equipment & services industry are still a little expensive, even after the recent corrections, Schlumberger may offer a potential longer-term growth to investors. All things considered, as of the 20th of January 2023, our up-to-date 90 days buy-or-sell advice on the company is Hold. We believe Schlumberger is undervalued with low probability of distress for the next two years.

Editorial Staff

Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management. View Profile

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Schlumberger NV. Please refer to our Terms of Use for any information regarding our disclosure principles.

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