Archrock, Inc. (AROC) vs Weatherford International PLC (WFRD)

Archrock, Inc. and Weatherford International PLC are both Oil & Gas Equipment & Services companies. Weatherford International PLC is the larger, with a market value of $6.0B against $5.4B — 1.1× the size. Archrock, Inc. trades at the lower P/E: 16.4× against 16.7×. Archrock, Inc. grew revenue faster over the last twelve months: 11.5% against −7.17%. Archrock, Inc. has the higher net margin (21.8% vs 7.66%) and the lower return on invested capital (8.96% vs 17.8%). Across the 20 metrics below, Archrock, Inc. leads on 11 and Weatherford International PLC on 9.

Valuation

Metric AROC WFRD Oil & Gas Equipment & Services median
P/E 16.36 16.68 24.78
P/S 3.53 1.28 1.28
P/B 3.42 3.42 1.85
Price to free cash flow 13.07 11.50 15.03
EV/EBITDA 8.80 7.27 8.93
EV/Sales 5.09 1.35 1.40
Earnings yield 6.11% 5.99% 3.12%
Free cash flow yield 7.65% 8.70% 5.01%

Profitability

Metric AROC WFRD Oil & Gas Equipment & Services median
Gross margin 67.34% 30.51% 23.27%
Operating margin 37.15% 12.70% 9.34%
Net margin 21.84% 7.66% 4.69%
Free cash flow margin 26.99% 11.41% 5.05%
Return on equity 22.19% 22.13% 4.92%
Return on assets 7.40% 7.15% 2.37%
Return on invested capital 8.96% 17.79% 4.32%

Growth

Metric AROC WFRD Oil & Gas Equipment & Services median
Revenue growth (TTM) 11.54% (7.17%) 6.08%
EPS growth (last fiscal year) 74.29% (12.15%) —
Revenue growth, 5-year CAGR 11.23% 5.94% 10.60%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric AROC WFRD Oil & Gas Equipment & Services median
Debt to equity 1.51 0.83 0.46
Current ratio 1.39 2.34 2.11
Net debt to EBITDA 2.84 0.43 0.76

Dividend

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

Size

Metric AROC WFRD Oil & Gas Equipment & Services median
Market cap 5.38b 6.04b 1.81b

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