Archrock (AROC) & Its Competitors Head-To-Head Review

Archrock (NYSE: AROC) is one of 47 publicly-traded companies in the “Oil Related Services and Equipment” industry, but how does it contrast to its competitors? We will compare Archrock to related businesses based on the strength of its institutional ownership, risk, earnings, valuation, profitability, analyst recommendations and dividends.

Profitability

This table compares Archrock and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Archrock -8.62% -2.93% -0.83%
Archrock Competitors -11.79% -5.37% -3.38%

Dividends

Archrock pays an annual dividend of $0.48 per share and has a dividend yield of 4.9%. Archrock pays out -49.0% of its earnings in the form of a dividend. As a group, “Oil Related Services and Equipment” companies pay a dividend yield of 2.9% and pay out -93.4% of their earnings in the form of a dividend.

Insider & Institutional Ownership

88.6% of Archrock shares are owned by institutional investors. Comparatively, 63.8% of shares of all “Oil Related Services and Equipment” companies are owned by institutional investors. 2.5% of Archrock shares are owned by company insiders. Comparatively, 12.4% of shares of all “Oil Related Services and Equipment” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Archrock has a beta of 3.5, suggesting that its share price is 250% more volatile than the S&P 500. Comparatively, Archrock’s competitors have a beta of 1.56, suggesting that their average share price is 56% more volatile than the S&P 500.

Earnings & Valuation

This table compares Archrock and its competitors gross revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Archrock $807.07 million -$54.55 million -10.00
Archrock Competitors $1.90 billion -$327.39 million -905.39

Archrock’s competitors have higher revenue, but lower earnings than Archrock. Archrock is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a breakdown of recent recommendations for Archrock and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Archrock 0 6 1 0 2.14
Archrock Competitors 417 2092 2926 117 2.49

Archrock currently has a consensus target price of $13.15, indicating a potential upside of 34.18%. As a group, “Oil Related Services and Equipment” companies have a potential upside of 21.46%. Given Archrock’s higher probable upside, equities analysts plainly believe Archrock is more favorable than its competitors.

Summary

Archrock beats its competitors on 8 of the 14 factors compared.

About Archrock

Archrock, Inc. is a natural gas contract operations services company. The Company also provides natural gas compression services to customers in the oil and natural gas industry throughout the United States and supplies aftermarket services to customers that own compression equipment in the United States. The Company operates through two segments: contract operations and aftermarket services. The contract operations segment primarily provides natural gas compression services to meet specific customer requirements. The Company provides contract operations services, including the personnel, equipment, tools, materials and supplies to meet its customers’ natural gas compression needs. The aftermarket services segment provides a range of services to support the compression needs of customers, from parts sales and normal maintenance services to full operation of a customer’s owned assets.

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