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, risk, profitability, dividends, earnings, analyst recommendations and media sentiment.

Is AROC or FANG a better dividend stock?

Archrock pays an annual dividend of $0.84 per share and has a dividend yield of 3.4%. Diamondback Energy pays an annual dividend of $4.00 per share and has a dividend yield of 2.9%. 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.

Does the media refer more to AROC or FANG?

In the previous week, Diamondback Energy had 35 more articles in the media than Archrock. MarketBeat recorded 48 mentions for Diamondback Energy and 13 mentions for Archrock. Archrock's average media sentiment score of 1.17 beat Diamondback Energy's score of 0.78 indicating that Archrock is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Archrock	6 Very Positive mention(s)	1 Positive mention(s)	3 Neutral mention(s)	2 Negative mention(s)	0 Very Negative mention(s)	Positive
Diamondback Energy	26 Very Positive mention(s)	6 Positive mention(s)	6 Neutral mention(s)	2 Negative mention(s)	1 Very Negative mention(s)	Positive

Do insiders and institutionals 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 large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

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%

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	3.80	$172.23M	$1.32	18.98
Diamondback Energy	$11.07B	3.60	$3.34B	$14.07	9.78

Do analysts recommend AROC or FANG?

Archrock currently has a consensus target price of $30.00, indicating a potential upside of 19.76%. Diamondback Energy has a consensus target price of $193.17, indicating a potential upside of 40.34%. Given Diamondback Energy's stronger consensus rating and higher probable upside, analysts clearly 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)	6 Buy rating(s)	0 Strong Buy rating(s)	2.86
Diamondback Energy	0 Sell rating(s)	1 Hold rating(s)	21 Buy rating(s)	2 Strong Buy rating(s)	3.04

Which has more risk and volatility, AROC or FANG?

Archrock has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500. Comparatively, Diamondback Energy has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500.

Summary

Diamondback Energy beats Archrock on 11 of the 19 factors compared between the two stocks.