Contrasting NCS Multistage (NCSM) & Archrock Partners (APLP)

NCS Multistage (NASDAQ: NCSM) and Archrock Partners (NASDAQ:APLP) are both small-cap energy companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, profitability, valuation and risk.

Profitability

This table compares NCS Multistage and Archrock Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NCS Multistage 2.42% 2.22% 1.56%
Archrock Partners -3.10% 4.32% 1.15%

Institutional & Insider Ownership

93.0% of NCS Multistage shares are held by institutional investors. Comparatively, 46.8% of Archrock Partners shares are held by institutional investors. 0.4% of Archrock Partners shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and price targets for NCS Multistage and Archrock Partners, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NCS Multistage 0 1 6 1 3.00
Archrock Partners 0 5 0 0 2.00

NCS Multistage currently has a consensus target price of $25.33, suggesting a potential upside of 45.26%. Archrock Partners has a consensus target price of $16.13, suggesting a potential upside of 21.06%. Given NCS Multistage’s stronger consensus rating and higher possible upside, equities research analysts plainly believe NCS Multistage is more favorable than Archrock Partners.

Valuation & Earnings

This table compares NCS Multistage and Archrock Partners’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NCS Multistage $98.47 million 7.78 -$17.92 million $0.09 193.78
Archrock Partners $562.36 million 1.67 -$10.75 million ($0.26) -51.23

Archrock Partners has higher revenue and earnings than NCS Multistage. Archrock Partners is trading at a lower price-to-earnings ratio than NCS Multistage, indicating that it is currently the more affordable of the two stocks.

Dividends

Archrock Partners pays an annual dividend of $1.14 per share and has a dividend yield of 8.6%. NCS Multistage does not pay a dividend. Archrock Partners pays out -438.5% of its earnings in the form of a dividend.

Summary

NCS Multistage beats Archrock Partners on 10 of the 16 factors compared between the two stocks.

NCS Multistage Company Profile

NCS Multistage Holdings, Inc. is a provider of engineered products and support services for oil and natural gas well completions and field development strategies. The Company’s products and services include Multistage Unlimited, casing-installed sliding sleeves, downhole frac isolation assembly, AirLock casing buoyancy system and liner hanger systems. The Company provides products and services primarily to exploration and production (E&P) companies for use in onshore wells, predominantly wells that have been drilled with horizontal laterals in unconventional oil and natural gas formations. The Company’s products and services are utilized in oil and natural gas basins throughout North America and in selected international markets, including Argentina, China and Russia.

Archrock Partners Company Profile

Archrock Partners, L.P. is engaged in natural gas compression industry in the United States. The Company’s contract operations services include designing, sourcing, owning, installing, operating, servicing, repairing and maintaining equipment to provide natural gas compression services to its customers. It provides contract operations services, including the personnel, equipment, tools, materials and supplies to meet its customers’ natural gas compression needs. Archrock General Partner, L.P., its general partner, is a subsidiary of Archrock and has responsibility for conducting its business and for managing its operations. The Company utilizes both slow and high speed reciprocating compressors primarily driven by internal natural gas fired combustion engines. Its customers include companies engaged in various aspects of the oil and natural gas industry, including natural gas producers, processors, gatherers, transporters and storage providers.

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