Archrock, Inc. (AROC) vs Halliburton Company (HAL)

Archrock, Inc. and Halliburton Company are both Oil & Gas Equipment & Services companies. Halliburton Company is the larger, with a market value of $26.4B against $4.7B — 5.7× the size. Halliburton Company trades at the lower P/E: 13.4× against 13.8×. Archrock, Inc. grew revenue faster over the last twelve months: 3.73% against 1.53%. Archrock, Inc. has the higher net margin (22.9% vs 8.90%) and the lower return on invested capital (8.94% vs 10.7%). Both pay a dividend; Archrock, Inc. yields more (3.36% vs 2.12%). Across the 22 metrics below, Archrock, Inc. leads on 11 and Halliburton Company on 11.

Valuation

Metric AROC HAL Oil & Gas Equipment & Services median
P/E 13.78 13.41 20.53
P/S 3.13 1.19 1.08
P/B 2.93 2.39 1.64
Price to free cash flow 11.20 14.62 12.36
EV/EBITDA 7.98 7.98 8.00
EV/Sales 4.70 1.42 1.29
Earnings yield 7.26% 7.46% 3.88%
Free cash flow yield 8.93% 6.84% 5.18%

Profitability

Metric AROC HAL Oil & Gas Equipment & Services median
Gross margin 67.54% 14.94% 22.88%
Operating margin 37.72% 12.58% 7.44%
Net margin 22.89% 8.90% 4.12%
Free cash flow margin 27.97% 8.11% 3.10%
Return on equity 22.63% 18.69% 5.46%
Return on assets 7.69% 7.81% 2.63%
Return on invested capital 8.94% 10.72% 4.26%

Growth

Metric AROC HAL Oil & Gas Equipment & Services median
Revenue growth (TTM) 3.73% 1.53% 4.65%
EPS growth (last fiscal year) 74.29% (47.00%) (13.00%)
Revenue growth, 5-year CAGR 11.23% 8.96% 12.57%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric AROC HAL Oil & Gas Equipment & Services median
Debt to equity 1.47 0.64 0.44
Current ratio 1.46 2.02 2.04
Net debt to EBITDA 2.84 1.46 1.12

Dividend

Metric AROC HAL Oil & Gas Equipment & Services median
Dividend yield 3.36% 2.12% 1.49%
Payout ratio 0.46 0.28 0.36

Size

Metric AROC HAL Oil & Gas Equipment & Services median
Market cap 4.66b 26.40b 1.44b

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