Financial Review: Kinetik (NYSE:KNTK) vs. ProPetro (NYSE:PUMP)

Kinetik (NYSE:KNTK) and ProPetro (NYSE:PUMP) are both energy companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, valuation, analyst recommendations, earnings, institutional ownership and profitability.

Profitability

This table compares Kinetik and ProPetro’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kinetik	29.23%	-32.70%	7.41%
ProPetro	0.06%	0.10%	0.07%

Risk and Volatility

Kinetik has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500. Comparatively, ProPetro has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500.

Insider and Institutional Ownership

21.1% of Kinetik shares are held by institutional investors. Comparatively, 84.7% of ProPetro shares are held by institutional investors. 3.8% of Kinetik shares are held by insiders. Comparatively, 1.6% of ProPetro shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Kinetik and ProPetro”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kinetik	$1.76 billion	4.19	$525.93 million	$2.57	17.80
ProPetro	$1.27 billion	1.39	$820,000.00	$0.01	1,447.20

Kinetik has higher revenue and earnings than ProPetro. Kinetik is trading at a lower price-to-earnings ratio than ProPetro, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and recommmendations for Kinetik and ProPetro, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kinetik	1	6	6	0	2.38
ProPetro	1	3	4	0	2.38

Kinetik presently has a consensus price target of $46.27, suggesting a potential upside of 1.16%. ProPetro has a consensus price target of $12.83, suggesting a potential downside of 11.32%. Given Kinetik’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Kinetik is more favorable than ProPetro.

Summary

Kinetik beats ProPetro on 10 of the 13 factors compared between the two stocks.

About Kinetik

Kinetik Holdings Inc. operates as a midstream company in the Texas Delaware Basin. It provides gathering, transportation, compression, processing, and treating services for companies that produce natural gas, natural gas liquids, crude oil, and water. The company is headquartered in Midland, Texas.

About ProPetro

ProPetro Holding Corp. operates as an integrated oilfield services company. The company provides hydraulic fracturing, wireline, cementing, and other complementary oilfield completion services to upstream oil and gas companies in the Permian Basin. ProPetro Holding Corp. was founded in 2007 and is headquartered in Midland, Texas.