Archrock, Inc. (AROC) vs Tidewater Inc. (TDW)

Archrock, Inc. and Tidewater Inc. are both Oil & Gas Equipment & Services companies. Archrock, Inc. is the larger, with a market value of $5.4B against $4.3B — 1.2× the size. Archrock, Inc. trades at the lower P/E: 16.4× against 17.0×. Archrock, Inc. grew revenue faster over the last twelve months: 11.5% against −1.02%. Archrock, Inc. has the higher net margin (21.8% vs 18.3%) and the lower return on invested capital (8.96% vs 10.9%). Both pay a dividend; Archrock, Inc. yields more (3.84% vs 0.17%). Across the 22 metrics below, Archrock, Inc. leads on 11 and Tidewater Inc. on 11.

Valuation

Metric AROC TDW Oil & Gas Equipment & Services median
P/E 16.36 17.02 24.78
P/S 3.53 3.13 1.28
P/B 3.42 3.04 1.85
Price to free cash flow 13.07 15.33 15.03
EV/EBITDA 8.80 8.22 8.93
EV/Sales 5.09 3.16 1.40
Earnings yield 6.11% 5.88% 3.12%
Free cash flow yield 7.65% 6.52% 5.01%

Profitability

Metric AROC TDW Oil & Gas Equipment & Services median
Gross margin 67.34% 48.09% 23.27%
Operating margin 37.15% 18.43% 9.34%
Net margin 21.84% 18.34% 4.69%
Free cash flow margin 26.99% 20.42% 5.05%
Return on equity 22.19% 19.56% 4.92%
Return on assets 7.40% 11.12% 2.37%
Return on invested capital 8.96% 10.86% 4.32%

Growth

Metric AROC TDW Oil & Gas Equipment & Services median
Revenue growth (TTM) 11.54% (1.02%) 6.08%
EPS growth (last fiscal year) 74.29% 95.29% —
Revenue growth, 5-year CAGR 11.23% 27.78% 10.60%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric AROC TDW Oil & Gas Equipment & Services median
Debt to equity 1.51 0.47 0.46
Current ratio 1.39 3.58 2.11
Net debt to EBITDA 2.84 0.14 0.76

Dividend

Metric AROC TDW Oil & Gas Equipment & Services median
Dividend yield 3.84% 0.17% 2.12%
Payout ratio 1.40 0.00 0.00

Size

Metric AROC TDW Oil & Gas Equipment & Services median
Market cap 5.38b 4.32b 1.81b

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