Energy Transfer (ET) Competitors

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

Which has more risk & volatility, AROC or ET?

Archrock has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500. Comparatively, Energy Transfer has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500.

Is AROC or ET a better dividend stock?

Archrock pays an annual dividend of $0.76 per share and has a dividend yield of 3.4%. Energy Transfer pays an annual dividend of $1.31 per share and has a dividend yield of 7.3%. Archrock pays out 64.4% of its earnings in the form of a dividend. Energy Transfer pays out 99.2% 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 analysts rate AROC or ET?

Archrock currently has a consensus price target of $27.00, suggesting a potential upside of 20.29%. Energy Transfer has a consensus price target of $22.58, suggesting a potential upside of 26.48%. Given Energy Transfer's stronger consensus rating and higher probable upside, analysts plainly 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)	5 Buy rating(s)	0 Strong Buy rating(s)	2.83
Energy Transfer	0 Sell rating(s)	1 Hold rating(s)	12 Buy rating(s)	0 Strong Buy rating(s)	2.92

Does the media favor AROC or ET?

In the previous week, Energy Transfer had 36 more articles in the media than Archrock. MarketBeat recorded 45 mentions for Energy Transfer and 9 mentions for Archrock. Archrock's average media sentiment score of 1.21 beat Energy Transfer's score of 1.06 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)	0 Positive mention(s)	3 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Energy Transfer	30 Very Positive mention(s)	9 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has preferable valuation and earnings, 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	3.43	$172.23M	$1.18	19.02
Energy Transfer	$82.67B	0.74	$4.45B	$1.32	13.53

Is AROC or ET more profitable?

Archrock has a net margin of 16.38% compared to Energy Transfer's net margin of 5.88%. Archrock's return on equity of 18.31% beat Energy Transfer's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Archrock	16.38%	18.31%	6.21%
Energy Transfer	5.88%	11.47%	3.88%

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

95.5% of Archrock shares are held by institutional investors. Comparatively, 38.2% of Energy Transfer shares are held by institutional investors. 2.6% of Archrock shares are held by insiders. Comparatively, 3.3% of Energy Transfer shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

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