National Oilwell Varco (NYSE: NOV) and Antero Midstream GP (NYSE:AMGP) are both mid-cap oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, earnings, valuation, dividends and profitability.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for National Oilwell Varco and Antero Midstream GP, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
National Oilwell Varco 3 17 7 0 2.15
Antero Midstream GP 0 2 13 1 2.94

National Oilwell Varco presently has a consensus target price of $37.65, indicating a potential upside of 15.42%. Antero Midstream GP has a consensus target price of $26.06, indicating a potential upside of 40.12%. Given Antero Midstream GP’s stronger consensus rating and higher probable upside, analysts plainly believe Antero Midstream GP is more favorable than National Oilwell Varco.

Valuation & Earnings

This table compares National Oilwell Varco and Antero Midstream GP’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
National Oilwell Varco $7.25 billion 1.71 -$2.41 billion ($2.49) -13.10
Antero Midstream GP $16.94 million 204.42 $9.71 million N/A N/A

Antero Midstream GP has lower revenue, but higher earnings than National Oilwell Varco.

Insider & Institutional Ownership

92.6% of National Oilwell Varco shares are owned by institutional investors. Comparatively, 64.7% of Antero Midstream GP shares are owned by institutional investors. 0.2% of National Oilwell Varco shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares National Oilwell Varco and Antero Midstream GP’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
National Oilwell Varco -13.33% -1.41% -0.94%
Antero Midstream GP 4.41% 17.95% 9.97%

Dividends

National Oilwell Varco pays an annual dividend of $0.20 per share and has a dividend yield of 0.6%. Antero Midstream GP pays an annual dividend of $0.24 per share and has a dividend yield of 1.3%. National Oilwell Varco pays out -8.0% of its earnings in the form of a dividend.

Summary

Antero Midstream GP beats National Oilwell Varco on 10 of the 14 factors compared between the two stocks.

National Oilwell Varco Company Profile

National Oilwell Varco, Inc. is an oilfield equipment manufacturer and technology provider. The Company operates through four segments: Rig Systems, Rig Aftermarket, Wellbore Technologies and Completion & Production Solutions. The Rig Systems segment makes and supports the capital equipment and integrated systems needed to drill oil and gas wells on land and offshore. The Rig Systems segment designs, manufactures and sells land rigs, offshore drilling equipment packages, and drilling rig components. The Rig Aftermarket segment provides aftermarket products and services to support a large installed base of land and offshore rigs, and drilling rig components manufactured by the Company’s Rig Systems segment. The Wellbore Technologies segment designs, manufactures, rents and sells a range of equipment and technologies used to perform drilling operations. The Completion & Production Solutions segment integrates technologies for well completions and oil and gas production.

Antero Midstream GP Company Profile

Antero Midstream GP LP, formerly Antero Resources Midstream Management LLC, owns, operates and develops midstream energy infrastructure. The Company’s segments include gathering and processing and water handling and treatment. The gathering and processing segment consist of long-term, fee-based activities including low-pressure gathering, compression, high-pressure gathering, processing, fractionation, and condensate gathering. The Company’s water handling and treatment segment consists of long-term fee based activities including fresh water delivery used in completion activity, and water handling services. The Company’s assets are located both in the southwestern core of the Marcellus Shale in northwest West Virginia and in the core of the Utica Shale in southern Ohio.

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