HAL vs. RNGR: Which Oilfield Service Stock Fits Your Portfolio?

Halliburton Company HAL and Ranger Energy Services, Inc. RNGR are two players in the oilfield service space. Over the past year, the larger HAL has declined 1.1%, while the much smaller RNGR outperformed, rising 9.2%.

Before coming to the investment conclusions, let's analyze the fundamentals and business prospects of both companies.

Ranger Energy Vulnerable to the US Land Market

In the domestic market, Ranger Energy is among the leading well-service providers. RNGR, in its August 2025 investment presentation, stated that it has been generating handsome revenues and profits from its High-Specification Rigs business segment. RNGR mentioned that although the rig count for drilling activities onshore declined substantially, production of oil and natural gas has not fallen materially.

This will support the demand for the company’s specialized equipment and services for maintaining and completing oil and natural gas wells in the onshore resources of the United States, which is reflected in the consistent performance of RNGR’s business unit.

Halliburton, a major oilfield service company, operates worldwide. Along with its third-quarter 2025 results, HAL mentioned that its international operations are progressing well in both onshore and offshore areas, with customers liking its offerings and services.

Thus, Halliburton’s business is more diversified, while Ranger Energy is primarily exposed to the volatility of the U.S. land market.

Capital Allocation Strategies of RNGR, HAL: Bold vs. Disciplined

Ranger Energy also has a strong balance sheet with handsome generations of cash flow and zero net debt. Thus, the company can lean on its robust balance sheet when the business environment turns unfavorable. RNGR is also committed to returning capital to shareholders. In the presentations, the company confirmed that since the second quarter of 2023, it has returned to stockholders roughly 43% of its free cash flow.

HAL, however, has a higher debt exposure, as reflected in the debt-to-capitalization of 41.7%. But the oilfield service giant has a high financial discipline. In the September quarter, Halliburton bought back shares worth $250 million and has aimed to cut costs of $100 million per quarter in the coming days.  

Thus, both players are financially disciplined but in different ways. While relative to its size, Ranger Energy is more aggressive with returns, HAL, with a cost control program and larger operations, aims to generate handsome cash flows.

Which is a Better Stock: HAL or RNGR?

Looking at the valuation, investors are willing to pay a premium price for HAL over RNGR. This reflects Halliburton’s worldwide diversified operations and, hence, more business stability. HAL's current trailing 12-month enterprise value/earnings before interest, tax, depreciation and amortization (EV/EBITDA) ratio is 6.49, higher than RNGR’s 3.31.

Hence, investors looking for stable operations, lower risk, global exposure and a large-cap profile can retain HAL, which carries a Zacks Rank #3 (Hold). Investors willing to take higher risks with expectations that onshore service activities will strengthen in the United States can keep holding on to Zacks #3 Ranked RNGR. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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