Archrock (NYSE: AROC) is one of 57 public companies in the “Oil Related Services and Equipment” industry, but how does it contrast to its competitors? We will compare Archrock to related companies based on the strength of its analyst recommendations, institutional ownership, risk, profitability, earnings, dividends and valuation.

Volatility & Risk

Archrock has a beta of 3.5, meaning that its stock price is 250% more volatile than the S&P 500. Comparatively, Archrock’s competitors have a beta of 1.55, meaning that their average stock price is 55% more volatile than the S&P 500.

Institutional and Insider Ownership

92.4% of Archrock shares are held by institutional investors. Comparatively, 64.5% of shares of all “Oil Related Services and Equipment” companies are held by institutional investors. 2.5% of Archrock shares are held by company insiders. Comparatively, 12.3% of shares of all “Oil Related Services and Equipment” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Archrock and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Archrock $807.07 million -$54.55 million -11.07
Archrock Competitors $2.00 billion -$345.71 million 9.22

Archrock’s competitors have higher revenue, but lower earnings than Archrock. Archrock is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Dividends

Archrock pays an annual dividend of $0.48 per share and has a dividend yield of 4.4%. Archrock pays out -49.0% of its earnings in the form of a dividend. As a group, “Oil Related Services and Equipment” companies pay a dividend yield of 3.1% and pay out -107.1% of their earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Archrock and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Archrock 0 5 1 0 2.17
Archrock Competitors 408 2084 2933 114 2.50

Archrock currently has a consensus price target of $13.35, suggesting a potential upside of 23.04%. As a group, “Oil Related Services and Equipment” companies have a potential upside of 18.85%. Given Archrock’s higher possible upside, equities research analysts plainly believe Archrock is more favorable than its competitors.

Profitability

This table compares Archrock and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Archrock -8.62% -2.96% -0.83%
Archrock Competitors -15.72% -7.17% -4.63%

Summary

Archrock beats its competitors on 8 of the 14 factors compared.

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.

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