Archrock, Inc. (AROC) vs NOV Inc. (NOV)

Archrock, Inc. and NOV Inc. are both Oil & Gas Equipment & Services companies. NOV Inc. is the larger, with a market value of $6.6B against $5.1B — 1.3× the size. Archrock, Inc. trades at the lower P/E: 15.9× against 72.8×. Archrock, Inc. grew revenue faster over the last twelve months: 11.5% against −1.72%. Archrock, Inc. has the higher net margin (21.8% vs 1.10%) and the higher return on invested capital (8.96% vs 4.03%). Both pay a dividend; Archrock, Inc. yields more (2.98% vs 1.82%). Across the 22 metrics below, Archrock, Inc. leads on 13 and NOV Inc. on 9.

Valuation

Metric AROC NOV Oil & Gas Equipment & Services median
P/E 15.89 72.81 22.50
P/S 3.43 0.79 1.17
P/B 3.32 1.09 1.82
Price to free cash flow 12.70 11.29 13.72
EV/EBITDA 8.62 8.41 8.68
EV/Sales 4.99 0.85 1.34
Earnings yield 6.29% 1.37% 3.94%
Free cash flow yield 7.88% 8.86% 5.66%

Profitability

Metric AROC NOV Oil & Gas Equipment & Services median
Gross margin 67.34% 20.53% 23.26%
Operating margin 37.15% 5.08% 9.34%
Net margin 21.84% 1.10% 4.69%
Free cash flow margin 26.99% 6.97% 5.35%
Return on equity 22.19% 1.48% 4.92%
Return on assets 7.40% 0.84% 2.37%
Return on invested capital 8.96% 4.03% 4.32%

Growth

Metric AROC NOV Oil & Gas Equipment & Services median
Revenue growth (TTM) 11.54% (1.72%) 6.08%
EPS growth (last fiscal year) 74.29% (75.63%) (13.00%)
Revenue growth, 5-year CAGR 11.23% 7.50% 14.44%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric AROC NOV Oil & Gas Equipment & Services median
Debt to equity 1.51 0.27 0.46
Current ratio 1.39 2.42 2.07
Net debt to EBITDA 2.84 0.18 0.75

Dividend

Metric AROC NOV Oil & Gas Equipment & Services median
Dividend yield 2.98% 1.82% 1.51%
Payout ratio 0.47 1.33 0.38

Size

Metric AROC NOV Oil & Gas Equipment & Services median
Market cap 5.13b 6.64b 1.63b

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