Exterran (NYSE: EXTN) and Archrock Partners (NASDAQ:APLP) are both small-cap oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.
Insider & Institutional Ownership
87.6% of Exterran shares are held by institutional investors. Comparatively, 46.8% of Archrock Partners shares are held by institutional investors. 2.2% of Exterran shares are held by insiders. Comparatively, 0.4% of Archrock Partners shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
This is a breakdown of current recommendations for Exterran and Archrock Partners, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Exterran presently has a consensus price target of $28.00, suggesting a potential downside of 1.41%. Archrock Partners has a consensus price target of $16.13, suggesting a potential upside of 14.69%. Given Archrock Partners’ higher possible upside, analysts clearly believe Archrock Partners is more favorable than Exterran.
Risk and Volatility
Exterran has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500. Comparatively, Archrock Partners has a beta of 2.15, meaning that its stock price is 115% more volatile than the S&P 500.
Archrock Partners pays an annual dividend of $1.14 per share and has a dividend yield of 8.1%. Exterran does not pay a dividend. Archrock Partners pays out -11,388.6% of its earnings in the form of a dividend.
Valuation & Earnings
This table compares Exterran and Archrock Partners’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Exterran||$1.03 billion||0.99||-$227.93 million||($0.02)||-1,420.00|
|Archrock Partners||$557.50 million||1.77||-$420,000.00||($0.01)||-1,404.60|
Archrock Partners has lower revenue, but higher earnings than Exterran. Exterran is trading at a lower price-to-earnings ratio than Archrock Partners, indicating that it is currently the more affordable of the two stocks.
This table compares Exterran and Archrock Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Archrock Partners beats Exterran on 9 of the 13 factors compared between the two stocks.
Exterran Company Profile
Exterran Corporation provides compression, production and processing products and services that support the production and transportation of oil and natural gas around the world. The Company operates through three segments: contract operations, aftermarket services, and oil and gas product sales. The contract operations segment provides natural gas compression services, production and processing equipment services, and maintenance services to meet specific customer requirements on assets owned by it. The aftermarket services segment provides a range of services to support the surface production, compression and processing needs of customers, from parts sales and normal maintenance services to full operation of a customer’s owned assets. The oil and gas product sales segment provides design, engineering, manufacturing, installation and sale of natural gas compression units, and accessories and equipment used in the production, treating and processing of crude oil and natural gas.
Archrock Partners Company Profile
Archrock Partners, L.P. is engaged in natural gas compression industry in the United States. The Company’s contract operations services include designing, sourcing, owning, installing, operating, servicing, repairing and maintaining equipment to provide natural gas compression services to its customers. It provides contract operations services, including the personnel, equipment, tools, materials and supplies to meet its customers’ natural gas compression needs. Archrock General Partner, L.P., its general partner, is a subsidiary of Archrock and has responsibility for conducting its business and for managing its operations. The Company utilizes both slow and high speed reciprocating compressors primarily driven by internal natural gas fired combustion engines. Its customers include companies engaged in various aspects of the oil and natural gas industry, including natural gas producers, processors, gatherers, transporters and storage providers.
Receive News & Ratings for Exterran Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Exterran and related companies with MarketBeat.com's FREE daily email newsletter.