NCS Multistage Holdings (NASDAQ: NCSM) and Archrock (NYSE:AROC) are both small-cap oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, earnings, risk, dividends and valuation.

Profitability

This table compares NCS Multistage Holdings and Archrock’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NCS Multistage Holdings N/A N/A N/A
Archrock -8.57% -3.44% -0.98%

Valuation & Earnings

This table compares NCS Multistage Holdings and Archrock’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
NCS Multistage Holdings $159.58 million 5.41 $27.87 million N/A N/A
Archrock $777.50 million 0.95 $284.77 million N/A N/A

Archrock has higher revenue and earnings than NCS Multistage Holdings.

Insider and Institutional Ownership

1.9% of NCS Multistage Holdings shares are owned by institutional investors. Comparatively, 90.2% of Archrock shares are owned by institutional investors. 2.5% of Archrock shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

Archrock pays an annual dividend of $0.48 per share and has a dividend yield of 4.6%. NCS Multistage Holdings does not pay a dividend.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for NCS Multistage Holdings and Archrock, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NCS Multistage Holdings 0 1 7 0 2.88
Archrock 0 5 1 0 2.17

NCS Multistage Holdings currently has a consensus target price of $29.00, indicating a potential upside of 46.24%. Archrock has a consensus target price of $13.35, indicating a potential upside of 28.37%. Given NCS Multistage Holdings’ stronger consensus rating and higher probable upside, analysts clearly believe NCS Multistage Holdings is more favorable than Archrock.

Summary

NCS Multistage Holdings beats Archrock on 7 of the 12 factors compared between the two stocks.

NCS Multistage Holdings Company Profile

NCS Multistage Holdings, Inc. is a provider of engineered products and support services for oil and natural gas well completions and field development strategies. The Company’s products and services include Multistage Unlimited, casing-installed sliding sleeves, downhole frac isolation assembly, AirLock casing buoyancy system and liner hanger systems. The Company provides products and services primarily to exploration and production (E&P) companies for use in onshore wells, predominantly wells that have been drilled with horizontal laterals in unconventional oil and natural gas formations. The Company’s products and services are utilized in oil and natural gas basins throughout North America and in selected international markets, including Argentina, China and Russia.

Archrock Company Profile

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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