Archrock (AROC) Competitors

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

Is AROC or FANG a better dividend stock?

Archrock pays an annual dividend of $0.76 per share and has a dividend yield of 3.3%. Diamondback Energy pays an annual dividend of $4.00 per share and has a dividend yield of 2.8%. Archrock pays out 64.4% of its earnings in the form of a dividend. Diamondback Energy pays out 24.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Archrock has increased its dividend for 3 consecutive years and Diamondback Energy has increased its dividend for 7 consecutive years.

Which has more risk and volatility, AROC or FANG?

Archrock has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500. Comparatively, Diamondback Energy has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500.

Is AROC or FANG more profitable?

Diamondback Energy has a net margin of 30.84% compared to Archrock's net margin of 16.38%. Archrock's return on equity of 18.31% beat Diamondback Energy's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Archrock	16.38%	18.31%	6.21%
Diamondback Energy	30.84%	11.22%	6.53%

Do analysts prefer AROC or FANG?

Archrock presently has a consensus price target of $27.00, indicating a potential upside of 15.81%. Diamondback Energy has a consensus price target of $191.59, indicating a potential upside of 32.49%. Given Diamondback Energy's stronger consensus rating and higher probable upside, analysts plainly believe Diamondback Energy is more favorable than Archrock.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Archrock	0 Sell rating(s)	1 Hold rating(s)	5 Buy rating(s)	0 Strong Buy rating(s)	2.83
Diamondback Energy	0 Sell rating(s)	1 Hold rating(s)	18 Buy rating(s)	2 Strong Buy rating(s)	3.05

Does the media favor AROC or FANG?

In the previous week, Diamondback Energy had 15 more articles in the media than Archrock. MarketBeat recorded 27 mentions for Diamondback Energy and 12 mentions for Archrock. Diamondback Energy's average media sentiment score of 1.28 beat Archrock's score of 1.17 indicating that Diamondback Energy is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Archrock	8 Very Positive mention(s)	0 Positive mention(s)	3 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Diamondback Energy	18 Very Positive mention(s)	4 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has preferable valuation and earnings, AROC or FANG?

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

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Archrock	$1.16B	3.56	$172.23M	$1.18	19.76
Diamondback Energy	$11.07B	3.82	$3.34B	$16.35	8.84

Do insiders & institutionals have more ownership in AROC or FANG?

95.5% of Archrock shares are held by institutional investors. Comparatively, 90.0% of Diamondback Energy shares are held by institutional investors. 2.6% of Archrock shares are held by insiders. Comparatively, 0.7% of Diamondback Energy shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Diamondback Energy beats Archrock on 14 of the 20 factors compared between the two stocks.