Energy Transfer (ET) Competitors

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

Is AROC or ET more profitable?

Archrock has a net margin of 17.17% compared to Energy Transfer's net margin of 5.80%. Archrock's return on equity of 18.74% beat Energy Transfer's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Archrock	17.17%	18.74%	6.28%
Energy Transfer	5.80%	11.08%	3.73%

Which has higher earnings & valuation, AROC or ET?

Energy Transfer has higher revenue and earnings than Archrock. Energy Transfer 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	3.77	$172.23M	$1.32	18.78
Energy Transfer	$82.67B	0.73	$4.45B	$1.29	13.56

Which has more volatility and risk, AROC or ET?

Archrock has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500. Comparatively, Energy Transfer has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500.

Do analysts rate AROC or ET?

Archrock presently has a consensus target price of $30.00, suggesting a potential upside of 21.02%. Energy Transfer has a consensus target price of $22.54, suggesting a potential upside of 28.86%. Given Energy Transfer's stronger consensus rating and higher probable upside, analysts clearly believe Energy Transfer 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
Energy Transfer	0 Sell rating(s)	1 Hold rating(s)	13 Buy rating(s)	0 Strong Buy rating(s)	2.93

Does the media prefer AROC or ET?

In the previous week, Energy Transfer had 13 more articles in the media than Archrock. MarketBeat recorded 22 mentions for Energy Transfer and 9 mentions for Archrock. Energy Transfer's average media sentiment score of 1.28 beat Archrock's score of 1.04 indicating that Energy Transfer is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Archrock	6 Very Positive mention(s)	1 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Energy Transfer	17 Very Positive mention(s)	2 Positive mention(s)	3 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Is AROC or ET a better dividend stock?

Archrock pays an annual dividend of $0.84 per share and has a dividend yield of 3.4%. Energy Transfer pays an annual dividend of $1.32 per share and has a dividend yield of 7.5%. Archrock pays out 63.6% of its earnings in the form of a dividend. Energy Transfer pays out 102.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Archrock has increased its dividend for 3 consecutive years and Energy Transfer has increased its dividend for 4 consecutive years. Energy Transfer is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Do institutionals and insiders hold more shares of AROC or ET?

95.5% of Archrock shares are owned by institutional investors. Comparatively, 38.2% of Energy Transfer shares are owned by institutional investors. 2.6% of Archrock shares are owned by company insiders. Comparatively, 3.3% of Energy Transfer shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Energy Transfer beats Archrock on 10 of the 19 factors compared between the two stocks.