Symbols

DTI vs. HAL: Which Oilfield Services Stock Offers Better Value?

Friday, Feb 27, 2026 9:12 am ET3min read

Aime Summary

- Drilling ToolsDTI-- International (DTI) focuses on drilling tools and rentals, while HalliburtonHAL-- (HAL) offers integrated oilfield services861106--, differing in market reach and operational scope.

- DTIDTI-- benefits from strong Middle East demand but faces North American challenges, whereas HALHAL-- leverages global tech like Zeus electric frac systems to navigate transitional markets.

- DTI trades at a higher forward P/E (21.35x) vs. HAL's 15.18x, with Zacks projecting a 650% 2026 EPS jump for DTI but mixed near-term earnings for HAL despite stronger ROE (19.77% vs. 1.12%).

- Analysts favor HAL for stability and long-term resilience due to diversified operations and disciplined strategy, while DTI suits risk-tolerant investors betting on cyclical U.S. drilling recovery.

The oil and gas field services sub-industry plays a vital role in the global energy ecosystem, with companies like Drilling Tools International DTI and Halliburton HAL serving as critical enablers of exploration and production activity. Upstream operators depend on specialized service firms for the equipment, technology and expertise needed to find, drill, complete and maintain oil and gas wells. These services include drilling toolsDTI--, well completion systems, pressure control equipment and well maintenance solutions. Without this support, energy production would be less efficient, more expensive and less safe.

Oilfield service companies also drive innovation by developing technologies that speed up drilling, lower costs, improve recovery and strengthen safety and environmental performance.

Both DTIDTI-- and HALHAL-- help operators boost efficiency and reduce downtime, but their models differ. HalliburtonHAL-- offers a wide range of integrated services, while DTI focuses mainly on drilling tools and rentals.

The Case for Drilling Tools International Stock

Drilling Tools International is operating in two very different markets right now. On one hand, the company is seeing strong long-term growth in the Eastern Hemisphere, especially in the Middle East, where demand for its Drill-N-Ream tools remains solid. That strength is helping the company charge better prices, keep its equipment more fully utilized and improve margins through cost control efforts.

On the other hand, conditions in North America — particularly in the U.S. land market — remain tough. Lower rig counts and continued pricing pressure are weighing on results. Because of this, management expects revenues to stay flat and adjusted EBITDA to have declined in fiscal 2025. For investors, the story is a balancing act. The company’s international growth shows it can adapt and find opportunities outside the core market. But in the near term, performance is still heavily tied to North America. Meaningful upside may require patience until the U.S. drilling cycle improves.

The Case for Halliburton Stock

Halliburton’s fundamental position reflects a company navigating a transitional market with strategic discipline, though not without near-term headwinds. The primary growth driver is its differentiated international strategy, where a collaborative value proposition and advanced technologies — such as the Zeus electric frac system and iCruise drilling platforms — are gaining traction in key markets like Latin America and the Middle East, positioning the company to capture the next cycle of global demand.

However, this strength is tempered by a cautious outlook for North America, where the company anticipates a high-single-digit revenue decline in 2026 due to customer activity cuts and its own decision to stack uneconomic fleets. For investors, this means Halliburton is prioritizing returns and capital efficiency over market share, focusing on long-term resilience and free cash flow generation rather than chasing short-term volume, which could lead to stronger performance when the macro environment rebalances.