Archrock (AROC) Competitors

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

Which has better earnings & valuation, 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	3.81	$172.23M	$1.32	19.03
Diamondback Energy	$14.01B	3.05	$3.34B	$14.07	10.48

Do analysts rate AROC or FANG?

Archrock presently has a consensus target price of $30.00, indicating a potential upside of 19.45%. Diamondback Energy has a consensus target price of $192.41, indicating a potential upside of 30.47%. Given Diamondback Energy's stronger consensus rating and higher possible 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)	7 Buy rating(s)	0 Strong Buy rating(s)	2.88
Diamondback Energy	0 Sell rating(s)	1 Hold rating(s)	20 Buy rating(s)	2 Strong Buy rating(s)	3.04

Does the media favor AROC or FANG?

In the previous week, Diamondback Energy had 30 more articles in the media than Archrock. MarketBeat recorded 35 mentions for Diamondback Energy and 5 mentions for Archrock. Diamondback Energy's average media sentiment score of 0.99 beat Archrock's score of 0.69 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	3 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive
Diamondback Energy	17 Very Positive mention(s)	5 Positive mention(s)	3 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has more volatility and risk, AROC or FANG?

Archrock has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500. Comparatively, Diamondback Energy has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500.

Is AROC or FANG more profitable?

Diamondback Energy has a net margin of 27.25% compared to Archrock's net margin of 17.17%. Archrock's return on equity of 18.74% beat Diamondback Energy's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Archrock	17.17%	18.74%	6.28%
Diamondback Energy	27.25%	9.48%	5.63%

Is AROC or FANG a better dividend stock?

Archrock pays an annual dividend of $0.84 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 2.7%. Archrock pays out 63.6% of its earnings in the form of a dividend. Diamondback Energy pays out 28.4% 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 raised its dividend for 3 consecutive years and Diamondback Energy has raised its dividend for 7 consecutive years.

Do institutionals and insiders hold more shares of 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 company insiders. Comparatively, 0.7% of Diamondback Energy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Diamondback Energy beats Archrock on 12 of the 20 factors compared between the two stocks.