Archrock (NYSE: AROC) and Forum Energy Technologies (NYSE:FET) are both small-cap oils/energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, valuation, earnings, analyst recommendations, institutional ownership and profitability.

Dividends

Archrock pays an annual dividend of $0.48 per share and has a dividend yield of 4.5%. Forum Energy Technologies does not pay a dividend.

Earnings and Valuation

This table compares Archrock and Forum Energy Technologies’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Archrock $777.50 million 0.98 $284.77 million N/A N/A
Forum Energy Technologies $657.68 million 1.81 -$22.64 million ($1.31) -9.47

Archrock has higher revenue and earnings than Forum Energy Technologies.

Institutional and Insider Ownership

91.9% of Archrock shares are held by institutional investors. 2.5% of Archrock shares are held by company insiders. Comparatively, 32.8% of Forum Energy Technologies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Archrock has a beta of 3.45, suggesting that its share price is 245% more volatile than the S&P 500. Comparatively, Forum Energy Technologies has a beta of 1.64, suggesting that its share price is 64% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Archrock and Forum Energy Technologies, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Archrock 0 5 1 0 2.17
Forum Energy Technologies 0 11 5 0 2.31

Archrock presently has a consensus target price of $13.35, indicating a potential upside of 24.77%. Forum Energy Technologies has a consensus target price of $19.67, indicating a potential upside of 58.60%. Given Forum Energy Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe Forum Energy Technologies is more favorable than Archrock.

Profitability

This table compares Archrock and Forum Energy Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Archrock -8.57% -3.44% -0.98%
Forum Energy Technologies -18.89% -4.55% -3.03%

Summary

Archrock beats Forum Energy Technologies on 8 of the 13 factors compared between the two stocks.

About Archrock

Archrock, Inc. is a natural gas contract operations services company. The Company also provides natural gas compression services to customers in the oil and natural gas industry throughout the United States and supplies aftermarket services to customers that own compression equipment in the United States. The Company operates through two segments: contract operations and aftermarket services. The contract operations segment primarily provides natural gas compression services to meet specific customer requirements. The Company provides contract operations services, including the personnel, equipment, tools, materials and supplies to meet its customers’ natural gas compression needs. The aftermarket services segment provides a range of services to support the compression needs of customers, from parts sales and normal maintenance services to full operation of a customer’s owned assets.

About Forum Energy Technologies

Forum Energy Technologies, Inc. is an oilfield products company. The Company designs, manufactures and distributes products, and engages in aftermarket services, parts supply and related services. The Company operates through three segments: Drilling & Subsea, Completions, and Production & Infrastructure. The Drilling & Subsea segment designs and manufactures products, and provides related services to the drilling and subsea construction markets. The Completions segment designs, manufactures and supplies products, and provide related services to the well construction, completion, stimulation and intervention markets. The Production & Infrastructure segment designs, manufactures and supplies products, and provides related equipment and services to production and infrastructure markets. Its product offering includes a mix of engineered capital products and replaced items that are used in the exploration, development, production and transportation of oil and natural gas.

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