Head to Head Comparison: Archrock (AROC) & Its Peers

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

Volatility and Risk

Archrock has a beta of 3.33, indicating that its share price is 233% more volatile than the S&P 500. Comparatively, Archrock’s peers have a beta of 1.60, indicating that their average share price is 60% more volatile than the S&P 500.

Valuation and Earnings

This table compares Archrock and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Archrock $807.07 million -$54.55 million -10.00
Archrock Competitors $1.90 billion -$327.68 million -870.28

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

Institutional and Insider Ownership

90.3% of Archrock shares are held by institutional investors. Comparatively, 67.5% of shares of all “Oil Related Services and Equipment” companies are held by institutional investors. 2.5% of Archrock shares are held by insiders. Comparatively, 13.0% of shares of all “Oil Related Services and Equipment” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Archrock and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Archrock 0 6 1 0 2.14
Archrock Competitors 418 2097 2929 117 2.49

Archrock currently has a consensus price target of $13.15, suggesting a potential upside of 35.57%. As a group, “Oil Related Services and Equipment” companies have a potential upside of 22.82%. Given Archrock’s higher probable upside, equities analysts clearly believe Archrock is more favorable than its peers.

Dividends

Archrock pays an annual dividend of $0.48 per share and has a dividend yield of 4.9%. Archrock pays out -49.5% of its earnings in the form of a dividend. As a group, “Oil Related Services and Equipment” companies pay a dividend yield of 2.8% and pay out -92.8% of their earnings in the form of a dividend.

Profitability

This table compares Archrock and its peers’ 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 -12.18% -5.60% -3.58%

Summary

Archrock beats its peers 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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