Archrock, Inc. (AROC) vs LandBridge Company LLC (LB)

Archrock, Inc. and LandBridge Company LLC are both Oil & Gas Equipment & Services companies. LandBridge Company LLC is the larger, with a market value of $6.4B against $5.4B — 1.2× the size. Archrock, Inc. trades at the lower P/E: 16.4× against 60.7×. LandBridge Company LLC grew revenue faster over the last twelve months: 44.1% against 11.5%. Archrock, Inc. has the higher net margin (21.8% vs 16.5%) and the higher return on invested capital (8.96% vs 6.51%). Across the 20 metrics below, Archrock, Inc. leads on 12 and LandBridge Company LLC on 8.

Valuation

Metric AROC LB Oil & Gas Equipment & Services median
P/E 16.36 60.73 24.78
P/S 3.53 10.09 1.28
P/B 3.42 2.74 1.85
Price to free cash flow 13.07 15.03 15.03
EV/EBITDA 8.80 17.80 8.93
EV/Sales 5.09 12.29 1.40
Earnings yield 6.11% 1.65% 3.12%
Free cash flow yield 7.65% 6.65% 5.01%

Profitability

Metric AROC LB Oil & Gas Equipment & Services median
Gross margin 67.34% 98.84% 23.27%
Operating margin 37.15% 61.34% 9.34%
Net margin 21.84% 16.48% 4.69%
Free cash flow margin 26.99% 67.16% 5.05%
Return on equity 22.19% 4.90% 4.92%
Return on assets 7.40% 3.04% 2.37%
Return on invested capital 8.96% 6.51% 4.32%

Growth

Metric AROC LB Oil & Gas Equipment & Services median
Revenue growth (TTM) 11.54% 44.09% 6.08%
EPS growth (last fiscal year) 74.29% 266.28% —
Revenue growth, 5-year CAGR 11.23% — 10.60%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric AROC LB Oil & Gas Equipment & Services median
Debt to equity 1.51 0.64 0.46
Current ratio 1.39 7.27 2.11
Net debt to EBITDA 2.84 4.01 0.76

Dividend

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

Size

Metric AROC LB Oil & Gas Equipment & Services median
Market cap 5.38b 6.36b 1.81b

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