Reviewing Kinetik (NYSE:KNTK) & Drilling Tools International (NASDAQ:DTI)

Drilling Tools International (NASDAQ:DTI) and Kinetik (NYSE:KNTK) are both energy companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, dividends, valuation and profitability.

Analyst Ratings

This is a breakdown of current ratings and price targets for Drilling Tools International and Kinetik, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Drilling Tools International	1	1	0	0	1.50
Kinetik	1	6	6	0	2.38

Kinetik has a consensus target price of $46.00, indicating a potential upside of 2.75%. Given Kinetik’s stronger consensus rating and higher possible upside, analysts plainly believe Kinetik is more favorable than Drilling Tools International.

Institutional & Insider Ownership

2.8% of Drilling Tools International shares are held by institutional investors. Comparatively, 21.1% of Kinetik shares are held by institutional investors. 56.5% of Drilling Tools International shares are held by company insiders. Comparatively, 3.8% of Kinetik shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Drilling Tools International and Kinetik”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Drilling Tools International	$154.45 million	0.92	$3.01 million	($0.19)	-21.32
Kinetik	$1.48 billion	4.88	$244.23 million	$0.42	106.60

Kinetik has higher revenue and earnings than Drilling Tools International. Drilling Tools International is trading at a lower price-to-earnings ratio than Kinetik, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Drilling Tools International and Kinetik’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Drilling Tools International	-3.93%	1.12%	0.60%
Kinetik	6.70%	-5.74%	1.81%

Risk and Volatility

Drilling Tools International has a beta of -0.35, suggesting that its share price is 135% less volatile than the S&P 500. Comparatively, Kinetik has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500.

Summary

Kinetik beats Drilling Tools International on 12 of the 14 factors compared between the two stocks.

About Drilling Tools International

Drilling Tools International Corporation provides oilfield equipment and services to oil and natural gas sectors in North America, Europe, and the Middle East. It offers downhole tool rentals, machining, and inspection services to support the global drilling and wellbore construction industry. The company also provides products are bottom hole assembly components, such as stabilizers, subs, non-magnetic and steel drill collars, hole openers, and roller reamers, as well as drill pipe and drill pipe accessories; ancillary equipment and handling tools to support its rental platform, including float valves, ring gauges, tool baskets, lift bail, lift subs, mud magnets, elevators, bracket and bail assemblies, slips, tongs, stabbing guides and safety clamps; and blowout preventers, and pressure control accessory equipment. In addition, it offers tool rental services, which consists of rental, inspection, machining, and repair services; rents downhole drilling tools used in horizontal and directional drilling of oil and natural gas; rents kellys, pip joints, work strings; maintains a fleet of rental equipment consisting of drill collars, stabilizers, crossover subs, wellbore conditioning tools, drill pipe, hevi-wate drill pipe, and tubing; rents surface control equipment, such as blowout preventers and handling tools; and provides downhole products for producing wells. Drilling Tools International Corporation is headquartered in Houston, Texas.

About Kinetik

Kinetik Holdings Inc. operates as a midstream company in the Texas Delaware Basin. It provides gathering, transportation, compression, processing, and treating services for companies that produce natural gas, natural gas liquids, crude oil, and water. The company is headquartered in Midland, Texas.