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 ($5.1B and $4.8B). Archrock, Inc. trades at the lower P/E: 15.9× against 55.5×. 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; Kodiak Gas Services, Inc. yields more (4.15% vs 2.98%). Across the 22 metrics below, Archrock, Inc. leads on 16 and Kodiak Gas Services, Inc. on 6.

Valuation

Metric AROC KGS Oil & Gas Equipment & Services median
P/E 15.89 55.54 22.50
P/S 3.43 3.24 1.17
P/B 3.32 2.08 1.82
Price to free cash flow 12.70 179.02 13.72
EV/EBITDA 8.62 10.46 8.68
EV/Sales 4.99 5.12 1.34
Earnings yield 6.29% 1.80% 3.94%
Free cash flow yield 7.88% 0.56% 5.66%

Profitability

Metric AROC KGS Oil & Gas Equipment & Services median
Gross margin 67.34% 63.85% 23.26%
Operating margin 37.15% 27.44% 9.34%
Net margin 21.84% 5.63% 4.69%
Free cash flow margin 26.99% 1.81% 5.35%
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% (13.00%)
Revenue growth, 5-year CAGR 11.23% 19.70% 14.44%
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 2.07
Net debt to EBITDA 2.84 4.03 0.75

Dividend

Metric AROC KGS Oil & Gas Equipment & Services median
Dividend yield 2.98% 4.15% 1.51%
Payout ratio 0.47 2.33 0.38

Size

Metric AROC KGS Oil & Gas Equipment & Services median
Market cap 5.13b 4.83b 1.63b

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