Head to Head Survey: Archrock Partners, L.P. (APLP) & Its Rivals

Archrock Partners, L.P. (NASDAQ: APLP) is one of 57 public companies in the “Oil Related Services and Equipment” industry, but how does it compare to its peers? We will compare Archrock Partners, L.P. to similar businesses based on the strength of its profitability, institutional ownership, analyst recommendations, dividends, risk, earnings and valuation.

Dividends

Archrock Partners, L.P. pays an annual dividend of $1.14 per share and has a dividend yield of 8.1%. Archrock Partners, L.P. pays out -518.2% of its earnings in the form of a dividend. As a group, “Oil Related Services and Equipment” companies pay a dividend yield of 2.7% and pay out -61.4% of their earnings in the form of a dividend. Archrock Partners, L.P. is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Profitability

This table compares Archrock Partners, L.P. and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Archrock Partners, L.P. -2.49% 6.02% 1.57%
Archrock Partners, L.P. Competitors -17.56% -16.84% -5.66%

Earnings & Valuation

This table compares Archrock Partners, L.P. and its peers revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Archrock Partners, L.P. $546.43 million $236.11 million -64.36
Archrock Partners, L.P. Competitors $2.04 billion $273.76 million -40.50

Archrock Partners, L.P.’s peers have higher revenue and earnings than Archrock Partners, L.P.. Archrock Partners, L.P. is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

41.2% of Archrock Partners, L.P. shares are owned by institutional investors. Comparatively, 65.8% of shares of all “Oil Related Services and Equipment” companies are owned by institutional investors. 0.4% of Archrock Partners, L.P. shares are owned by company insiders. Comparatively, 11.9% of shares of all “Oil Related Services and Equipment” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Archrock Partners, L.P. has a beta of 2.24, suggesting that its stock price is 124% more volatile than the S&P 500. Comparatively, Archrock Partners, L.P.’s peers have a beta of 1.60, suggesting that their average stock price is 60% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Archrock Partners, L.P. and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Archrock Partners, L.P. 0 2 1 0 2.33
Archrock Partners, L.P. Competitors 387 1981 2860 114 2.51

Archrock Partners, L.P. currently has a consensus price target of $18.50, indicating a potential upside of 30.65%. As a group, “Oil Related Services and Equipment” companies have a potential upside of 22.75%. Given Archrock Partners, L.P.’s higher probable upside, analysts plainly believe Archrock Partners, L.P. is more favorable than its peers.

Summary

Archrock Partners, L.P. beats its peers on 8 of the 15 factors compared.

About Archrock Partners, L.P.

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.

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