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 $6.3B against $5.1B — 1.2× the size. Archrock, Inc. trades at the lower P/E: 15.9× against 60.9×. 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 15.89 60.87 22.50
P/S 3.43 10.12 1.17
P/B 3.32 2.74 1.82
Price to free cash flow 12.70 15.06 13.72
EV/EBITDA 8.62 17.84 8.68
EV/Sales 4.99 12.32 1.34
Earnings yield 6.29% 1.64% 3.94%
Free cash flow yield 7.88% 6.64% 5.66%

Profitability

Metric AROC LB Oil & Gas Equipment & Services median
Gross margin 67.34% 98.84% 23.26%
Operating margin 37.15% 61.34% 9.34%
Net margin 21.84% 16.48% 4.69%
Free cash flow margin 26.99% 67.16% 5.35%
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% (13.00%)
Revenue growth, 5-year CAGR 11.23% — 14.44%
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 2.07
Net debt to EBITDA 2.84 4.01 0.75

Dividend

Metric AROC LB Oil & Gas Equipment & Services median
Dividend yield 2.98% — 1.51%
Payout ratio 0.47 — 0.38

Size

Metric AROC LB Oil & Gas Equipment & Services median
Market cap 5.13b 6.26b 1.63b

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