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. is the larger, with a market value of $4.7B against $3.9B — 1.2× the size. Archrock, Inc. trades at the lower P/E: 13.8× against 46.4×. Kodiak Gas Services, Inc. grew revenue faster over the last twelve months: 8.23% against 3.73%. Archrock, Inc. has the higher net margin (22.9% vs 5.74%) and the higher return on invested capital (8.94% vs 4.98%). Both pay a dividend; Kodiak Gas Services, Inc. yields more (3.73% vs 3.36%). Across the 22 metrics below, Archrock, Inc. leads on 15 and Kodiak Gas Services, Inc. on 7.

Valuation

Metric AROC KGS Oil & Gas Equipment & Services median
P/E 13.78 46.35 20.53
P/S 3.13 2.70 1.08
P/B 2.93 1.74 1.64
Price to free cash flow 11.20 149.41 12.36
EV/EBITDA 7.98 9.36 8.00
EV/Sales 4.70 4.59 1.29
Earnings yield 7.26% 2.16% 3.88%
Free cash flow yield 8.93% 0.67% 5.18%

Profitability

Metric AROC KGS Oil & Gas Equipment & Services median
Gross margin 67.54% 63.85% 22.88%
Operating margin 37.72% 27.44% 7.44%
Net margin 22.89% 5.74% 4.12%
Free cash flow margin 27.97% 1.81% 3.10%
Return on equity 22.63% 4.55% 5.46%
Return on assets 7.69% 1.62% 2.63%
Return on invested capital 8.94% 4.98% 4.26%

Growth

Metric AROC KGS Oil & Gas Equipment & Services median
Revenue growth (TTM) 3.73% 8.23% 4.65%
EPS growth (last fiscal year) 74.29% 58.93% (13.00%)
Revenue growth, 5-year CAGR 11.23% 19.70% 12.57%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric AROC KGS Oil & Gas Equipment & Services median
Debt to equity 1.47 1.28 0.44
Current ratio 1.46 1.45 2.04
Net debt to EBITDA 2.84 4.03 1.12

Dividend

Metric AROC KGS Oil & Gas Equipment & Services median
Dividend yield 3.36% 3.73% 1.49%
Payout ratio 0.46 1.75 0.36

Size

Metric AROC KGS Oil & Gas Equipment & Services median
Market cap 4.66b 3.94b 1.44b

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