Contrasting Archrock Partners (APLP) & Ion Geophysical (IO)

Archrock Partners (NASDAQ: APLP) and Ion Geophysical (NYSE:IO) are both small-cap oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, profitability, analyst recommendations, institutional ownership, earnings, valuation and dividends.

Analyst Ratings

This is a summary of current ratings and recommmendations for Archrock Partners and Ion Geophysical, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Archrock Partners 0 6 0 0 2.00
Ion Geophysical 0 0 1 0 3.00

Archrock Partners presently has a consensus price target of $16.13, suggesting a potential upside of 29.52%. Given Archrock Partners’ higher probable upside, equities analysts clearly believe Archrock Partners is more favorable than Ion Geophysical.

Institutional and Insider Ownership

46.4% of Archrock Partners shares are owned by institutional investors. Comparatively, 34.4% of Ion Geophysical shares are owned by institutional investors. 0.4% of Archrock Partners shares are owned by company insiders. Comparatively, 15.2% of Ion Geophysical shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Volatility & Risk

Archrock Partners has a beta of 2.15, suggesting that its share price is 115% more volatile than the S&P 500. Comparatively, Ion Geophysical has a beta of 3.62, suggesting that its share price is 262% more volatile than the S&P 500.

Profitability

This table compares Archrock Partners and Ion Geophysical’s 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%
Ion Geophysical -15.31% -67.22% -6.46%

Dividends

Archrock Partners pays an annual dividend of $1.14 per share and has a dividend yield of 9.2%. Ion Geophysical does not pay a dividend. Archrock Partners pays out -422.2% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Archrock Partners and Ion Geophysical’s 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 1.56 -$10.75 million ($0.27) -46.11
Ion Geophysical $197.55 million 1.68 -$65.14 million ($2.57) -10.72

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

Summary

Archrock Partners beats Ion Geophysical on 10 of the 15 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.

Ion Geophysical Company Profile

ION Geophysical Corporation is a technology-focused company. It provides geophysical technology, services and solutions to the global oil and gas industry. Its offerings are designed to enable oil and gas exploration and production (E&P) companies to obtain images of the Earth’s subsurface. It offers services and products through three segments: E&P Technology & Services, E&P Operations Optimization, and Ocean Bottom Services. E&P Technology & Services provides services and products for complex and hard-to-image geologies, such as deepwater subsalt formations in the Gulf of Mexico and offshore East and West Africa and Brazil; unconventional reservoirs, such as those found onshore in shale, tight gas and oil sands formations, and offshore basin-wide seismic data and imaging programs. E&P Operations Optimization combines its Optimization Software and Services and Devices offerings. Ocean Bottom Services consists of OceanGeo, an ocean bottom data acquisition services company.

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