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 $5.1B against $3.9B — 1.3× the size. Archrock, Inc. trades at the lower P/E: 15.9× against 16.0×. 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%). Across the 21 metrics below, Tidewater Inc. leads on 11 and Archrock, Inc. on 10.

Valuation

Metric AROC TDW Oil & Gas Equipment & Services median
P/E 15.89 15.96 22.50
P/S 3.43 2.94 1.17
P/B 3.32 2.85 1.82
Price to free cash flow 12.70 14.38 13.72
EV/EBITDA 8.62 7.71 8.68
EV/Sales 4.99 2.97 1.34
Earnings yield 6.29% 6.26% 3.94%
Free cash flow yield 7.88% 6.95% 5.66%

Profitability

Metric AROC TDW Oil & Gas Equipment & Services median
Gross margin 67.34% 48.09% 23.26%
Operating margin 37.15% 18.43% 9.34%
Net margin 21.84% 18.34% 4.69%
Free cash flow margin 26.99% 20.42% 5.35%
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% (13.00%)
Revenue growth, 5-year CAGR 11.23% 27.78% 14.44%
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 2.07
Net debt to EBITDA 2.84 0.14 0.75

Dividend

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

Size

Metric AROC TDW Oil & Gas Equipment & Services median
Market cap 5.13b 3.94b 1.63b

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