Archrock Partners (NASDAQ: APLP) and Geospace Technologies (NASDAQ:GEOS) are both small-cap energy companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, valuation, profitability, earnings and institutional ownership.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Archrock Partners $562.36 million 1.85 -$10.75 million ($0.26) -56.77
Geospace Technologies $73.72 million 2.85 -$56.79 million ($4.32) -3.58

Archrock Partners has higher revenue and earnings than Geospace Technologies. Archrock Partners is trading at a lower price-to-earnings ratio than Geospace Technologies, 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 7.7%. Geospace Technologies does not pay a dividend. Archrock Partners pays out -438.5% of its earnings in the form of a dividend.

Profitability

This table compares Archrock Partners and Geospace Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Archrock Partners -3.10% 4.32% 1.15%
Geospace Technologies -77.04% -26.21% -25.12%

Risk & Volatility

Archrock Partners has a beta of 2.19, suggesting that its stock price is 119% more volatile than the S&P 500. Comparatively, Geospace Technologies has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for Archrock Partners and Geospace Technologies, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Archrock Partners 0 5 0 0 2.00
Geospace Technologies 0 0 0 0 N/A

Archrock Partners presently has a consensus price target of $16.13, indicating a potential upside of 9.25%. Given Archrock Partners’ higher possible upside, research analysts plainly believe Archrock Partners is more favorable than Geospace Technologies.

Insider & Institutional Ownership

46.8% of Archrock Partners shares are owned by institutional investors. Comparatively, 76.3% of Geospace Technologies shares are owned by institutional investors. 0.4% of Archrock Partners shares are owned by company insiders. Comparatively, 3.9% of Geospace Technologies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Archrock Partners beats Geospace Technologies on 10 of the 14 factors compared between the two stocks.

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.

Geospace Technologies Company Profile

Geospace Technologies Corporation designs and manufactures instruments and equipment used by the oil and gas industry to acquire seismic data in order to locate, characterize and monitor hydrocarbon producing reservoirs. The Company also designs and manufactures non-seismic products, including industrial products, offshore cables and imaging equipment. The Company operates through two segments: Seismic and Non-Seismic. The Company’s Seismic product segments include traditional exploration products, wireless exploration products and reservoir products. Its seismic product lines consist of land and marine nodal data acquisition systems, permanent land and seabed reservoir monitoring products and services, geophones and geophone strings, hydrophones, leader wire, connectors, telemetry cables, marine streamer retrieval and steering devices and various other products. The Company’s Non-Seismic product segments include imaging and industrial products.

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