Archrock, Inc. (AROC) vs Cactus, Inc. (WHD)

Archrock, Inc. and Cactus, Inc. are both Oil & Gas Equipment & Services companies. Archrock, Inc. and Cactus, Inc. are of similar size ($5.4B and $5.2B). Archrock, Inc. trades at the lower P/E: 16.4× against 54.0×. Cactus, Inc. grew revenue faster over the last twelve months: 21.8% against 11.5%. Archrock, Inc. has the higher net margin (21.8% vs 6.01%) and the lower return on invested capital (8.96% vs 14.4%). Both pay a dividend; Archrock, Inc. yields more (3.84% vs 1.07%). Across the 23 metrics below, Archrock, Inc. leads on 13 and Cactus, Inc. on 10.

Valuation

Metric AROC WHD Oil & Gas Equipment & Services median
P/E 16.36 54.02 24.78
P/S 3.53 3.28 1.28
P/B 3.42 3.06 1.85
Price to free cash flow 13.07 13.55 15.03
EV/EBITDA 8.80 11.41 8.93
EV/Sales 5.09 3.03 1.40
Earnings yield 6.11% 1.85% 3.12%
Free cash flow yield 7.65% 7.38% 5.01%

Profitability

Metric AROC WHD Oil & Gas Equipment & Services median
Gross margin 67.34% 33.23% 23.27%
Operating margin 37.15% 18.65% 9.34%
Net margin 21.84% 6.01% 4.69%
Free cash flow margin 26.99% 24.19% 5.05%
Return on equity 22.19% 5.82% 4.92%
Return on assets 7.40% 3.71% 2.37%
Return on invested capital 8.96% 14.36% 4.32%

Growth

Metric AROC WHD Oil & Gas Equipment & Services median
Revenue growth (TTM) 11.54% 21.79% 6.08%
EPS growth (last fiscal year) 74.29% (13.00%) —
Revenue growth, 5-year CAGR 11.23% 25.36% 10.60%
Net income growth, 5-year CAGR 0.00% 36.96% 0.00%

Health

Metric AROC WHD Oil & Gas Equipment & Services median
Debt to equity 1.51 0.01 0.46
Current ratio 1.39 2.59 2.11
Net debt to EBITDA 2.84 (1.54) 0.76

Dividend

Metric AROC WHD Oil & Gas Equipment & Services median
Dividend yield 3.84% 1.07% 2.12%
Payout ratio 1.40 0.22 0.00

Size

Metric AROC WHD Oil & Gas Equipment & Services median
Market cap 5.38b 5.23b 1.81b

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