Analyzing Kinetik (NYSE:KNTK) and Drilling Tools International (NASDAQ:DTI)

Kinetik (NYSE:KNTK) and Drilling Tools International (NASDAQ:DTI) are both energy companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, analyst recommendations, risk, profitability and earnings.

Institutional & Insider Ownership

21.1% of Kinetik shares are held by institutional investors. Comparatively, 2.8% of Drilling Tools International shares are held by institutional investors. 3.8% of Kinetik shares are held by insiders. Comparatively, 56.5% of Drilling Tools International 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.

Volatility and Risk

Kinetik has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500. Comparatively, Drilling Tools International has a beta of -0.35, meaning that its share price is 135% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Kinetik and Drilling Tools International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kinetik	1	6	6	0	2.38
Drilling Tools International	1	1	0	0	1.50

Kinetik presently has a consensus price target of $46.00, suggesting a potential upside of 13.55%. Given Kinetik’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Kinetik is more favorable than Drilling Tools International.

Profitability

This table compares Kinetik and Drilling Tools International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kinetik	6.70%	-5.74%	1.81%
Drilling Tools International	-3.93%	1.12%	0.60%

Valuation & Earnings

This table compares Kinetik and Drilling Tools International”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kinetik	$1.48 billion	4.41	$244.23 million	$0.42	96.45
Drilling Tools International	$154.45 million	0.80	$3.01 million	($0.19)	-18.37

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

Summary

Kinetik beats Drilling Tools International on 12 of the 14 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 Drilling Tools International

Drilling Tools International Corporation provides oilfield equipment and services to oil and natural gas sectors in North America, Europe, and the Middle East. It offers downhole tool rentals, machining, and inspection services to support the global drilling and wellbore construction industry. The company also provides products are bottom hole assembly components, such as stabilizers, subs, non-magnetic and steel drill collars, hole openers, and roller reamers, as well as drill pipe and drill pipe accessories; ancillary equipment and handling tools to support its rental platform, including float valves, ring gauges, tool baskets, lift bail, lift subs, mud magnets, elevators, bracket and bail assemblies, slips, tongs, stabbing guides and safety clamps; and blowout preventers, and pressure control accessory equipment. In addition, it offers tool rental services, which consists of rental, inspection, machining, and repair services; rents downhole drilling tools used in horizontal and directional drilling of oil and natural gas; rents kellys, pip joints, work strings; maintains a fleet of rental equipment consisting of drill collars, stabilizers, crossover subs, wellbore conditioning tools, drill pipe, hevi-wate drill pipe, and tubing; rents surface control equipment, such as blowout preventers and handling tools; and provides downhole products for producing wells. Drilling Tools International Corporation is headquartered in Houston, Texas.