Bristow Group (NYSE: BRS) and Archrock (NYSE:AROC) are both small-cap energy companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, profitability, institutional ownership, analyst recommendations, valuation, dividends and risk.
Bristow Group pays an annual dividend of $0.14 per share and has a dividend yield of 0.9%. Archrock pays an annual dividend of $0.48 per share and has a dividend yield of 5.1%. Bristow Group pays out -2.9% of its earnings in the form of a dividend. Archrock pays out -49.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Archrock is clearly the better dividend stock, given its higher yield and lower payout ratio.
This table compares Bristow Group and Archrock’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Bristow Group and Archrock’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Bristow Group||$1.40 billion||0.41||-$170.53 million||($4.91)||-3.32|
|Archrock||$807.07 million||0.89||-$54.55 million||($0.98)||-9.54|
Archrock has lower revenue, but higher earnings than Bristow Group. Archrock is trading at a lower price-to-earnings ratio than Bristow Group, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Bristow Group has a beta of 3.15, suggesting that its stock price is 215% more 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 is a breakdown of recent ratings and price targets for Bristow Group and Archrock, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Bristow Group currently has a consensus price target of $12.33, suggesting a potential downside of 24.24%. Archrock has a consensus price target of $13.13, suggesting a potential upside of 40.37%. Given Archrock’s stronger consensus rating and higher possible upside, analysts plainly believe Archrock is more favorable than Bristow Group.
Institutional and Insider Ownership
83.3% of Archrock shares are held by institutional investors. 10.0% of Bristow Group shares are held by insiders. Comparatively, 2.5% of Archrock shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Archrock beats Bristow Group on 13 of the 16 factors compared between the two stocks.
About Bristow Group
Bristow Group Inc. is an industrial aviation services provider and helicopter service provider to the offshore energy industry. The Industrial Aviation Services segment’s operations are conducted primarily through four regions: Europe Caspian, Africa, Americas and Asia Pacific. The Europe Caspian region consists of all its operations and affiliates in Europe and Central Asia, including Norway, the United Kingdom and Turkmenistan. The Africa region consists of all its operations and affiliates on the African continent, including Nigeria, Tanzania and Egypt. The Americas region consists of all its operations and affiliates in North America and South America, including Brazil, Canada, Trinidad and the United States Gulf of Mexico. The Asia Pacific region consists of all its operations and affiliates in Australia and Southeast Asia, including Malaysia and Sakhalin. Additionally, it operates a training unit, Bristow Academy.
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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