Archrock (NYSE: AROC) is one of 48 public companies in the “Oil Related Services and Equipment” industry, but how does it weigh in compared to its peers? We will compare Archrock to related businesses based on the strength of its earnings, analyst recommendations, valuation, profitability, dividends, institutional ownership and risk.
Archrock pays an annual dividend of $0.48 per share and has a dividend yield of 4.9%. Archrock pays out -49.0% of its earnings in the form of a dividend. As a group, “Oil Related Services and Equipment” companies pay a dividend yield of 2.9% and pay out -92.7% of their earnings in the form of a dividend.
This table compares Archrock and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
90.3% of Archrock shares are held by institutional investors. Comparatively, 67.5% of shares of all “Oil Related Services and Equipment” companies are held by institutional investors. 2.5% of Archrock shares are held by company insiders. Comparatively, 13.0% of shares of all “Oil Related Services and Equipment” companies 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 & Valuation
This table compares Archrock and its peers gross revenue, earnings per share and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Archrock||$807.07 million||-$54.55 million||-9.90|
|Archrock Competitors||$1.90 billion||-$327.68 million||-801.87|
Archrock’s peers have higher revenue, but lower earnings than Archrock. Archrock is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
This is a summary of recent ratings for Archrock and its peers, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Archrock currently has a consensus price target of $13.15, suggesting a potential upside of 35.57%. As a group, “Oil Related Services and Equipment” companies have a potential upside of 26.06%. Given Archrock’s higher probable upside, analysts clearly believe Archrock is more favorable than its peers.
Volatility and Risk
Archrock has a beta of 3.4, meaning that its share price is 240% more volatile than the S&P 500. Comparatively, Archrock’s peers have a beta of 1.60, meaning that their average share price is 60% more volatile than the S&P 500.
Archrock beats its peers on 8 of the 14 factors compared.
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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