Tidewater (NYSE:TDW) vs. Kodiak Gas Services (NYSE:KGS) Financial Contrast

Kodiak Gas Services (NYSE:KGS) and Tidewater (NYSE:TDW) are both mid-cap energy companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, dividends, risk, valuation, analyst recommendations and institutional ownership.

Earnings & Valuation

This table compares Kodiak Gas Services and Tidewater”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kodiak Gas Services	$1.31 billion	4.59	$80.52 million	$0.84	70.71
Tidewater	$1.35 billion	3.27	$334.66 million	$4.94	18.00

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

Risk & Volatility

Kodiak Gas Services has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500. Comparatively, Tidewater has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500.

Profitability

This table compares Kodiak Gas Services and Tidewater’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kodiak Gas Services	5.77%	11.92%	3.70%
Tidewater	18.34%	5.36%	3.05%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Kodiak Gas Services and Tidewater, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kodiak Gas Services	0	2	10	0	2.83
Tidewater	0	6	3	1	2.50

Kodiak Gas Services presently has a consensus target price of $78.89, suggesting a potential upside of 32.83%. Tidewater has a consensus target price of $98.25, suggesting a potential upside of 10.50%. Given Kodiak Gas Services’ stronger consensus rating and higher probable upside, analysts clearly believe Kodiak Gas Services is more favorable than Tidewater.

Institutional & Insider Ownership

24.9% of Kodiak Gas Services shares are held by institutional investors. Comparatively, 95.1% of Tidewater shares are held by institutional investors. 0.6% of Kodiak Gas Services shares are held by insiders. Comparatively, 5.9% of Tidewater shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Kodiak Gas Services beats Tidewater on 8 of the 15 factors compared between the two stocks.

About Kodiak Gas Services

Kodiak Gas Services, Inc. operates contract compression infrastructure for customers in the oil and gas industry in the United States. It operates in two segments, Compression Operations and Other Services. The Compression Operations segment operates company-owned and customer-owned compression infrastructure to enable the production, gathering, and transportation of natural gas and oil. The Other Services segment provides a range of contract services, including station construction, maintenance and overhaul, and other ancillary time and material-based offerings. The company was formerly known as Frontier TopCo, Inc. Kodiak Gas Services, Inc. was founded in 2010 and is headquartered in The Woodlands, Texas.

About Tidewater

Tidewater Inc., together with its subsidiaries, provides offshore support vessels and marine support services to the offshore energy industry through the operation of a fleet of marine service vessels worldwide. It provides services in support of offshore oil and gas exploration, field development, and production, as well as windfarm development and maintenance, including towing of and anchor handling for mobile offshore drilling units; transporting supplies and personnel necessary to sustain drilling, workover, and production activities; offshore construction, and seismic and subsea support; geotechnical survey support for windfarm construction; and various specialized services, such as pipe and cable laying. The company operates anchor handling towing supply vessels, platform supply vessels, crew boats, utility vessels, and offshore tugs. The company serves integrated and independent oil and gas exploration, field development, and production companies; mid-sized and smaller independent exploration and production companies; foreign government-owned or government-controlled organizations, and other related companies; offshore drilling contractors; and other companies, such as offshore construction, windfarm development, diving, and well stimulation companies. Tidewater Inc. was incorporated in 1956 and is headquartered in Houston, Texas.