Financial Analysis: Archrock (AROC) vs. Oceaneering International (OII)
Archrock (NYSE: AROC) and Oceaneering International (NYSE:OII) are both oils/energy companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, profitability, earnings, dividends, valuation, risk and analyst recommendations.
Volatility & Risk
Archrock has a beta of 3.49, suggesting that its share price is 249% more volatile than the S&P 500. Comparatively, Oceaneering International has a beta of 1.66, suggesting that its share price is 66% more volatile than the S&P 500.
Earnings and Valuation
This table compares Archrock and Oceaneering International’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Archrock||$777.50 million||0.96||$284.77 million||N/A||N/A|
|Oceaneering International||$2.00 billion||1.10||$236.08 million||($0.29)||-77.10|
Archrock has higher revenue, but lower earnings than Oceaneering International.
This is a summary of recent ratings and price targets for Archrock and Oceaneering International, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Archrock presently has a consensus target price of $13.35, suggesting a potential upside of 26.54%. Oceaneering International has a consensus target price of $29.30, suggesting a potential upside of 31.04%. Given Oceaneering International’s stronger consensus rating and higher possible upside, analysts clearly believe Oceaneering International is more favorable than Archrock.
Archrock pays an annual dividend of $0.48 per share and has a dividend yield of 4.5%. Oceaneering International pays an annual dividend of $0.60 per share and has a dividend yield of 2.7%. Oceaneering International pays out -206.9% of its earnings in the form of a dividend.
Insider & Institutional Ownership
91.9% of Archrock shares are held by institutional investors. Comparatively, 99.7% of Oceaneering International shares are held by institutional investors. 2.5% of Archrock shares are held by company insiders. Comparatively, 0.9% of Oceaneering International shares are held by company 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.
This table compares Archrock and Oceaneering International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Oceaneering International beats Archrock on 10 of the 14 factors compared between the two stocks.
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.
About Oceaneering International
Oceaneering International, Inc. is an oilfield provider of engineered services and products, primarily to the offshore oil and gas industry, with a focus on deepwater applications. The Company’s business segments are contained within two businesses: services and products provided to the oil and gas industry (Oilfield) and all other services and products (Advanced Technologies). Its four business segments within the Oilfield business are Remotely Operated Vehicles (ROVs), Subsea Products, Subsea Projects and Asset Integrity. The services and products it provides to the oil and gas industry include remotely operated vehicles, specialty subsea hardware, engineering and project management, subsea intervention services, including manned diving, survey and positioning services and asset integrity and nondestructive testing services. The Company serves the defense, aerospace and commercial theme park industries.
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