Archrock Partners (NASDAQ: APLP) and Forum Energy Technologies (NYSE:FET) are both small-cap oils/energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.
Risk & Volatility
Archrock Partners has a beta of 2.15, suggesting that its share price is 115% more volatile than the S&P 500. Comparatively, Forum Energy Technologies has a beta of 1.7, suggesting that its share price is 70% more volatile than the S&P 500.
Archrock Partners pays an annual dividend of $1.14 per share and has a dividend yield of 8.6%. Forum Energy Technologies does not pay a dividend. Archrock Partners pays out -422.2% of its earnings in the form of a dividend.
Insider and Institutional Ownership
46.4% of Archrock Partners shares are held by institutional investors. Comparatively, 96.3% of Forum Energy Technologies shares are held by institutional investors. 0.4% of Archrock Partners shares are held by insiders. Comparatively, 32.8% of Forum Energy Technologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This table compares Archrock Partners and Forum Energy Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Forum Energy Technologies||-16.85%||-3.97%||-2.63%|
This is a breakdown of current ratings and target prices for Archrock Partners and Forum Energy Technologies, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Forum Energy Technologies||0||12||2||0||2.14|
Archrock Partners currently has a consensus target price of $16.13, indicating a potential upside of 22.07%. Forum Energy Technologies has a consensus target price of $18.08, indicating a potential upside of 19.71%. Given Archrock Partners’ higher possible upside, research analysts clearly believe Archrock Partners is more favorable than Forum Energy Technologies.
Earnings and Valuation
This table compares Archrock Partners and Forum Energy Technologies’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Archrock Partners||$562.36 million||1.65||-$10.75 million||($0.27)||-48.92|
|Forum Energy Technologies||$587.60 million||2.78||-$81.97 million||($1.26)||-11.98|
Archrock Partners has higher earnings, but lower revenue than Forum Energy Technologies. Archrock Partners is trading at a lower price-to-earnings ratio than Forum Energy Technologies, indicating that it is currently the more affordable of the two stocks.
Archrock Partners beats Forum Energy Technologies on 10 of the 16 factors compared between the two stocks.
About Archrock Partners
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.
About Forum Energy Technologies
Forum Energy Technologies, Inc. is an oilfield products company. The Company designs, manufactures and distributes products, and engages in aftermarket services, parts supply and related services. The Company operates through three segments: Drilling & Subsea, Completions, and Production & Infrastructure. The Drilling & Subsea segment designs and manufactures products, and provides related services to the drilling and subsea construction markets. The Completions segment designs, manufactures and supplies products, and provide related services to the well construction, completion, stimulation and intervention markets. The Production & Infrastructure segment designs, manufactures and supplies products, and provides related equipment and services to production and infrastructure markets. Its product offering includes a mix of engineered capital products and replaced items that are used in the exploration, development, production and transportation of oil and natural gas.
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