Forum Energy Technologies (NYSE: FET) and Archrock (NYSE:AROC) are both small-cap oils/energy companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, dividends, profitability, earnings, risk, analyst recommendations and institutional ownership.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Forum Energy Technologies and Archrock, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Forum Energy Technologies 0 11 5 0 2.31
Archrock 0 5 1 0 2.17

Forum Energy Technologies currently has a consensus price target of $19.67, suggesting a potential upside of 39.98%. Archrock has a consensus price target of $13.35, suggesting a potential upside of 18.14%. Given Forum Energy Technologies’ stronger consensus rating and higher probable upside, equities analysts plainly believe Forum Energy Technologies is more favorable than Archrock.

Earnings & Valuation

This table compares Forum Energy Technologies and Archrock’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Forum Energy Technologies $657.68 million 2.06 -$22.64 million ($1.31) -10.73
Archrock $777.50 million 1.03 $284.77 million N/A N/A

Archrock has higher revenue and earnings than Forum Energy Technologies.

Institutional and Insider Ownership

91.9% of Archrock shares are owned by institutional investors. 32.8% of Forum Energy Technologies shares are owned by company insiders. Comparatively, 2.5% of Archrock shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Forum Energy Technologies has a beta of 1.64, indicating that its stock price is 64% more volatile than the S&P 500. Comparatively, Archrock has a beta of 3.45, indicating that its stock price is 245% more volatile than the S&P 500.

Profitability

This table compares Forum Energy Technologies and Archrock’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Forum Energy Technologies -18.89% -4.55% -3.03%
Archrock -8.57% -3.44% -0.98%

Dividends

Archrock pays an annual dividend of $0.48 per share and has a dividend yield of 4.2%. Forum Energy Technologies does not pay a dividend.

Summary

Archrock beats Forum Energy Technologies on 8 of the 13 factors compared between the two stocks.

About Forum Energy Technologies

Forum Energy Technologies, Inc. is an oilfield products company. The Company designs, manufactures and distributes products, and engages in aftermarket services, parts supply and related services. The Company operates through three segments: Drilling & Subsea, Completions, and Production & Infrastructure. The Drilling & Subsea segment designs and manufactures products, and provides related services to the drilling and subsea construction markets. The Completions segment designs, manufactures and supplies products, and provide related services to the well construction, completion, stimulation and intervention markets. The Production & Infrastructure segment designs, manufactures and supplies products, and provides related equipment and services to production and infrastructure markets. Its product offering includes a mix of engineered capital products and replaced items that are used in the exploration, development, production and transportation of oil and natural gas.

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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