Archrock, Inc. (AROC) vs Kodiak Gas Services, Inc. (KGS)

Archrock, Inc. and Kodiak Gas Services, Inc. are both Oil & Gas Equipment & Services companies. Archrock, Inc. and Kodiak Gas Services, Inc. are of similar size ($5.4B and $5.3B). Archrock, Inc. trades at the lower P/E: 16.4× against 62.3×. Archrock, Inc. grew revenue faster over the last twelve months: 11.5% against 8.23%. Archrock, Inc. has the higher net margin (21.8% vs 5.63%) and the higher return on invested capital (8.96% vs 4.98%). Both pay a dividend; Archrock, Inc. yields more (3.84% vs 1.58%). Across the 22 metrics below, Archrock, Inc. leads on 18 and Kodiak Gas Services, Inc. on 4.

Valuation

Metric AROC KGS Oil & Gas Equipment & Services median
P/E 16.36 62.32 24.78
P/S 3.53 3.63 1.28
P/B 3.42 2.34 1.85
Price to free cash flow 13.07 200.87 15.03
EV/EBITDA 8.80 11.26 8.93
EV/Sales 5.09 5.52 1.40
Earnings yield 6.11% 1.60% 3.12%
Free cash flow yield 7.65% 0.50% 5.01%

Profitability

Metric AROC KGS Oil & Gas Equipment & Services median
Gross margin 67.34% 63.85% 23.27%
Operating margin 37.15% 27.44% 9.34%
Net margin 21.84% 5.63% 4.69%
Free cash flow margin 26.99% 1.81% 5.05%
Return on equity 22.19% 4.46% 4.92%
Return on assets 7.40% 1.59% 2.37%
Return on invested capital 8.96% 4.98% 4.32%

Growth

Metric AROC KGS Oil & Gas Equipment & Services median
Revenue growth (TTM) 11.54% 8.23% 6.08%
EPS growth (last fiscal year) 74.29% 58.93% —
Revenue growth, 5-year CAGR 11.23% 19.70% 10.60%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric AROC KGS Oil & Gas Equipment & Services median
Debt to equity 1.51 1.28 0.46
Current ratio 1.39 1.45 2.11
Net debt to EBITDA 2.84 4.03 0.76

Dividend

Metric AROC KGS Oil & Gas Equipment & Services median
Dividend yield 3.84% 1.58% 2.12%
Payout ratio 1.40 — 0.00

Size

Metric AROC KGS Oil & Gas Equipment & Services median
Market cap 5.38b 5.34b 1.81b

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