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

Institutional and Insider Ownership

64.7% of Antero Midstream GP shares are held by institutional investors. Comparatively, 92.5% of National-Oilwell Varco shares are held by institutional investors. 0.2% of National-Oilwell Varco shares are held 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.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Antero Midstream GP $16.94 million 228.93 $9.71 million N/A N/A
National-Oilwell Varco $7.25 billion 2.01 -$2.41 billion ($2.48) -15.50

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

Analyst Ratings

This is a breakdown of current ratings and price targets for Antero Midstream GP and National-Oilwell Varco, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Antero Midstream GP 0 2 13 1 2.94
National-Oilwell Varco 3 16 7 0 2.15

Antero Midstream GP presently has a consensus target price of $26.38, indicating a potential upside of 26.62%. National-Oilwell Varco has a consensus target price of $37.70, indicating a potential downside of 1.90%. Given Antero Midstream GP’s stronger consensus rating and higher possible upside, analysts clearly believe Antero Midstream GP is more favorable than National-Oilwell Varco.

Profitability

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

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

Dividends

Antero Midstream GP pays an annual dividend of $0.24 per share and has a dividend yield of 1.2%. National-Oilwell Varco pays an annual dividend of $0.20 per share and has a dividend yield of 0.5%. National-Oilwell Varco pays out -8.1% 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.

About Antero Midstream GP

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.

About National-Oilwell Varco

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.

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