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 $4.7B against $3.4B — 1.4× the size. Archrock, Inc. trades at the lower P/E: 13.8× against 13.9×. Archrock, Inc. grew revenue faster over the last twelve months: 3.73% against −1.02%. Archrock, Inc. has the higher net margin (22.9% vs 18.3%) and the lower return on invested capital (8.94% 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 13.78 13.92 20.53
P/S 3.13 2.56 1.08
P/B 2.93 2.48 1.64
Price to free cash flow 11.20 12.54 12.36
EV/EBITDA 7.98 6.73 8.00
EV/Sales 4.70 2.59 1.29
Earnings yield 7.26% 7.18% 3.88%
Free cash flow yield 8.93% 7.98% 5.18%

Profitability

Metric AROC TDW Oil & Gas Equipment & Services median
Gross margin 67.54% 48.09% 22.88%
Operating margin 37.72% 18.43% 7.44%
Net margin 22.89% 18.34% 4.12%
Free cash flow margin 27.97% 20.42% 3.10%
Return on equity 22.63% 19.56% 5.46%
Return on assets 7.69% 11.12% 2.63%
Return on invested capital 8.94% 10.86% 4.26%

Growth

Metric AROC TDW Oil & Gas Equipment & Services median
Revenue growth (TTM) 3.73% (1.02%) 4.65%
EPS growth (last fiscal year) 74.29% 95.29% (13.00%)
Revenue growth, 5-year CAGR 11.23% 27.78% 12.57%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric AROC TDW Oil & Gas Equipment & Services median
Debt to equity 1.47 0.47 0.44
Current ratio 1.46 3.58 2.04
Net debt to EBITDA 2.84 0.14 1.12

Dividend

Metric AROC TDW Oil & Gas Equipment & Services median
Dividend yield 3.36% — 1.49%
Payout ratio 0.46 — 0.36

Size

Metric AROC TDW Oil & Gas Equipment & Services median
Market cap 4.66b 3.44b 1.44b

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