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 $7.1B against $5.4B — 1.3× the size. Archrock, Inc. trades at the lower P/E: 16.4× against 76.4×. 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 (3.84% vs 1.18%). 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 16.36 76.38 24.78
P/S 3.53 0.83 1.28
P/B 3.42 1.14 1.85
Price to free cash flow 13.07 11.84 15.03
EV/EBITDA 8.80 8.79 8.93
EV/Sales 5.09 0.89 1.40
Earnings yield 6.11% 1.31% 3.12%
Free cash flow yield 7.65% 8.44% 5.01%

Profitability

Metric AROC NOV Oil & Gas Equipment & Services median
Gross margin 67.34% 20.53% 23.27%
Operating margin 37.15% 5.08% 9.34%
Net margin 21.84% 1.10% 4.69%
Free cash flow margin 26.99% 6.97% 5.05%
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%) —
Revenue growth, 5-year CAGR 11.23% 7.50% 10.60%
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 2.11
Net debt to EBITDA 2.84 0.18 0.76

Dividend

Metric AROC NOV Oil & Gas Equipment & Services median
Dividend yield 3.84% 1.18% 2.12%
Payout ratio 1.40 0.19 0.00

Size

Metric AROC NOV Oil & Gas Equipment & Services median
Market cap 5.38b 7.09b 1.81b

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