Archrock, Inc. (AROC) vs Solaris Energy Infrastructure, Inc. (SEI)

Archrock, Inc. and Solaris Energy Infrastructure, Inc. are both Oil & Gas Equipment & Services companies. Archrock, Inc. and Solaris Energy Infrastructure, Inc. are of similar size ($5.2B and $5.1B). Archrock, Inc. trades at the lower P/E: 15.9× against 61.5×. Solaris Energy Infrastructure, Inc. grew revenue faster over the last twelve months: 70.5% against 11.5%. Archrock, Inc. has the higher net margin (21.8% vs 6.95%) and the higher return on invested capital (8.96% vs 3.93%). Both pay a dividend; Archrock, Inc. yields more (2.98% vs 0.77%). Across the 21 metrics below, Archrock, Inc. leads on 17 and Solaris Energy Infrastructure, Inc. on 4.

Valuation

Metric AROC SEI Oil & Gas Equipment & Services median
P/E 15.89 61.51 22.50
P/S 3.43 4.87 1.17
P/B 3.32 3.20 1.82
Price to free cash flow 12.70 n/m 13.72
EV/EBITDA 8.62 18.41 8.68
EV/Sales 4.99 7.21 1.34
Earnings yield 6.29% 1.63% 3.94%
Free cash flow yield 7.88% (19.50%) 5.66%

Profitability

Metric AROC SEI Oil & Gas Equipment & Services median
Gross margin 67.34% 49.92% 23.26%
Operating margin 37.15% 24.25% 9.34%
Net margin 21.84% 6.95% 4.69%
Free cash flow margin 26.99% (95.04%) 5.35%
Return on equity 22.19% 5.46% 4.92%
Return on assets 7.40% 1.86% 2.37%
Return on invested capital 8.96% 3.93% 4.32%

Growth

Metric AROC SEI Oil & Gas Equipment & Services median
Revenue growth (TTM) 11.54% 70.52% 6.08%
EPS growth (last fiscal year) 74.29% 32.00% (13.00%)
Revenue growth, 5-year CAGR 11.23% 43.30% 14.44%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric AROC SEI Oil & Gas Equipment & Services median
Debt to equity 1.51 2.24 0.46
Current ratio 1.39 4.12 2.07
Net debt to EBITDA 2.84 3.59 0.75

Dividend

Metric AROC SEI Oil & Gas Equipment & Services median
Dividend yield 2.98% 0.77% 1.51%
Payout ratio 0.47 0.56 0.38

Size

Metric AROC SEI Oil & Gas Equipment & Services median
Market cap 5.13b 5.22b 1.63b

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