Analyzing Exterran (EXTN) & Archrock (AROC)
Exterran (NYSE: EXTN) and Archrock (NYSE:AROC) are both small-cap oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, earnings, valuation, risk, institutional ownership, dividends and analyst recommendations.
Archrock pays an annual dividend of $0.48 per share and has a dividend yield of 5.1%. Exterran does not pay a dividend. Archrock pays out -49.0% of its earnings in the form of a dividend.
87.6% of Exterran shares are owned by institutional investors. Comparatively, 83.3% of Archrock shares are owned by institutional investors. 2.2% of Exterran shares are owned by insiders. Comparatively, 2.5% of Archrock shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This is a summary of recent ratings for Exterran and Archrock, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Exterran presently has a consensus target price of $28.00, suggesting a potential upside of 1.63%. Archrock has a consensus target price of $13.13, suggesting a potential upside of 40.37%. Given Archrock’s stronger consensus rating and higher probable upside, analysts clearly believe Archrock is more favorable than Exterran.
Valuation & Earnings
This table compares Exterran and Archrock’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Exterran||$1.03 billion||0.96||-$227.93 million||($0.02)||-1,377.50|
|Archrock||$807.07 million||0.89||-$54.55 million||($0.98)||-9.54|
Archrock has lower revenue, but higher earnings than Exterran. Exterran is trading at a lower price-to-earnings ratio than Archrock, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Exterran has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500. Comparatively, Archrock has a beta of 3.2, suggesting that its stock price is 220% more volatile than the S&P 500.
This table compares Exterran and Archrock’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Archrock beats Exterran on 10 of the 16 factors compared between the two stocks.
Exterran Company Profile
Exterran Corporation provides compression, production and processing products and services that support the production and transportation of oil and natural gas around the world. The Company operates through three segments: contract operations, aftermarket services, and oil and gas product sales. The contract operations segment provides natural gas compression services, production and processing equipment services, and maintenance services to meet specific customer requirements on assets owned by it. The aftermarket services segment provides a range of services to support the surface production, compression and processing needs of customers, from parts sales and normal maintenance services to full operation of a customer’s owned assets. The oil and gas product sales segment provides design, engineering, manufacturing, installation and sale of natural gas compression units, and accessories and equipment used in the production, treating and processing of crude oil and natural gas.
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.
Receive News & Ratings for Exterran Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Exterran and related companies with MarketBeat.com's FREE daily email newsletter.