Better Buy: Baker Hughes vs. ExxonMobil
Drilling for oil and natural gas is a difficult business right now, with service providers like Baker Hughes (NYSE: BKR) feeling the pinch just as much as drillers like ExxonMobil (NYSE: XOM). So far in 2019, the stocks of both companies are up in the low single digits, compared to the roughly 25% advance of the S&P 500. That said, both now yield notably more than the 2% or so that the index offers. So which one is the better buy today?
Both Baker Hughes and Exxon hail from the energy sector, helping to provide the world with oil and natural gas. Exxon is an integrated company, with operations that span from exploring for and developing oil and gas wells (the upstream) to turning these energy sources into usable substances like gasoline and chemicals (the downstream). Having such a broad reach within the industry provides at least a modicum of balance to Exxon's business, since low oil prices often benefit downstream businesses and help to offset the financial impact of weak energy prices.
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Source Fool.com
