Contrasting Petrofac (OTCMKTS:POFCY) and Archrock (NYSE:AROC)

Petrofac (OTCMKTS:POFCY) and Archrock (NYSE:AROC) are both energy companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.

Profitability

This table compares Petrofac and Archrock’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Petrofac	N/A	N/A	N/A
Archrock	17.17%	18.74%	6.28%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Petrofac	$2.50 billion	0.05	-$505.00 million	N/A	N/A
Archrock	$1.16 billion	3.67	$172.23 million	$1.32	18.28

Archrock has lower revenue, but higher earnings than Petrofac.

Volatility and Risk

Petrofac has a beta of 2.88, suggesting that its stock price is 188% more volatile than the S&P 500. Comparatively, Archrock has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500.

Institutional and Insider Ownership

95.5% of Archrock shares are owned by institutional investors. 2.6% of Archrock shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Petrofac and Archrock, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Petrofac	0	0	0	0	0.00
Archrock	0	1	5	0	2.83

Archrock has a consensus price target of $28.40, suggesting a potential upside of 17.67%. Given Archrock’s stronger consensus rating and higher possible upside, analysts clearly believe Archrock is more favorable than Petrofac.

Summary

Archrock beats Petrofac on 10 of the 12 factors compared between the two stocks.

About Petrofac

Petrofac Limited designs, builds, manages, and maintains infrastructure for the energy industries in the United Kingdom, Algeria, Thailand, Oman, Kuwait, Iraq, the United Arab Emirates, the Netherlands, and internationally. It operates through three segments: Engineering & Construction (E&C); Asset Solutions; and Integrated Energy Services (IES). The E&C segment provides onshore and offshore engineering, procurement, construction, installation, and commissioning services. The Asset Solutions segment offers concept, feasibility, and front-end engineering design services, as well as manages and maintains onshore and offshore operations. The IES segment focuses on delivering value from the existing asset portfolio. The company was founded in 1981 and is based in St Helier, Jersey.

About Archrock

Archrock, Inc., together with its subsidiaries, operates as an energy infrastructure company in the United States. The company operates in two segments, Contract Operations and Aftermarket Services. It engages in the designing, sourcing, owning, installing, operating, servicing, repairing, and maintaining of its owned fleet of natural gas compression equipment to provide natural gas compression services. The company also sells over-the-counter parts and components; and provides operations, major and routine maintenance, overhaul, and reconfiguration services to customers who own compression equipment. It serves integrated and independent oil and natural gas processors, gatherers, and transporters. The company was formerly known as Exterran Holdings, Inc. and changed its name to Archrock, Inc. in November 2015. Archrock, Inc. was founded in 1990 and is headquartered in Houston, Texas.