TechnipFMC (NYSE:FTI) & Kinetik (NYSE:KNTK) Head-To-Head Contrast

TechnipFMC (NYSE:FTI) and Kinetik (NYSE:KNTK) are both energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.

Analyst Ratings

This is a summary of recent ratings and price targets for TechnipFMC and Kinetik, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TechnipFMC	0	2	11	1	2.93
Kinetik	0	3	6	0	2.67

TechnipFMC presently has a consensus target price of $36.46, suggesting a potential upside of 5.49%. Kinetik has a consensus target price of $56.56, suggesting a potential upside of 28.04%. Given Kinetik’s higher probable upside, analysts clearly believe Kinetik is more favorable than TechnipFMC.

Insider and Institutional Ownership

96.6% of TechnipFMC shares are held by institutional investors. Comparatively, 21.1% of Kinetik shares are held by institutional investors. 1.8% of TechnipFMC shares are held by insiders. Comparatively, 3.8% of Kinetik shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

TechnipFMC has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500. Comparatively, Kinetik has a beta of 3.05, indicating that its share price is 205% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TechnipFMC	8.93%	27.01%	8.75%
Kinetik	10.74%	-8.05%	2.47%

Dividends

TechnipFMC pays an annual dividend of $0.20 per share and has a dividend yield of 0.6%. Kinetik pays an annual dividend of $3.12 per share and has a dividend yield of 7.1%. TechnipFMC pays out 10.5% of its earnings in the form of a dividend. Kinetik pays out 328.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. TechnipFMC has increased its dividend for 1 consecutive years and Kinetik has increased its dividend for 1 consecutive years.

Earnings and Valuation

This table compares TechnipFMC and Kinetik”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TechnipFMC	$9.08 billion	1.60	$842.90 million	$1.90	18.19
Kinetik	$1.48 billion	4.70	$244.23 million	$0.95	46.49

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

Summary

TechnipFMC beats Kinetik on 10 of the 17 factors compared between the two stocks.

About TechnipFMC

TechnipFMC plc engages in the energy projects, technologies, and systems and services businesses in Europe, Central Asia, North America, Latin America, the Asia Pacific, Africa, the Middle East, and internationally. It operates through two segments: Subsea and Surface Technologies. The Subsea segment engages in the design, engineering, procurement, manufacturing, fabrication, installation, and life of field services for subsea systems, subsea field infrastructure, and subsea pipe systems used in oil and gas production and transportation. It provides subsea production and processing system; flexible pipe; subsea umbilicals, risers, and flowlines; vessels; robotics; well and asset services; and Subsea Studio for optimizing the development, execution, and operation of current and future subsea fields. The Surface Technologies segment designs, manufactures, and services products and systems used in land and shallow water exploration and production of crude oil and natural gas. This segment offers drilling; surface wellheads and production trees systems; iComplete, a pressure control system; fracturing tree and manifold systems; flexible pipes; safety and integrity systems, multiphase meter modules, in-line separation and processing systems, and standard pumps; well control and integrity systems; separation and processing systems; skid systems; and flow measurement and automation solutions. It also offers planning, testing and installation, commissioning, operations, replacement and upgrade, maintenance, storage, preservation, intervention, integrity, decommissioning, and abandonment; and supplies flowline products and services. TechnipFMC plc was founded in 1884 and is headquartered in Houston, Texas.

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.