Head-To-Head Comparison: Oceaneering International (NYSE:OII) and Kinetik (NYSE:KNTK)

Oceaneering International (NYSE:OII) and Kinetik (NYSE:KNTK) are both mid-cap energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, dividends, valuation, profitability, institutional ownership, earnings and analyst recommendations.

Profitability

This table compares Oceaneering International and Kinetik’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Oceaneering International	12.12%	18.35%	7.12%
Kinetik	28.58%	-36.36%	7.10%

Valuation & Earnings

This table compares Oceaneering International and Kinetik”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oceaneering International	$2.78 billion	1.43	$353.76 million	$3.37	11.82
Kinetik	$1.76 billion	4.55	$525.93 million	$2.45	20.16

Kinetik has lower revenue, but higher earnings than Oceaneering International. Oceaneering International is trading at a lower price-to-earnings ratio than Kinetik, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and target prices for Oceaneering International and Kinetik, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oceaneering International	0	4	1	0	2.20
Kinetik	0	6	7	2	2.73

Oceaneering International currently has a consensus price target of $38.33, suggesting a potential downside of 3.77%. Kinetik has a consensus price target of $49.17, suggesting a potential downside of 0.47%. Given Kinetik’s stronger consensus rating and higher possible upside, analysts clearly believe Kinetik is more favorable than Oceaneering International.

Insider and Institutional Ownership

93.9% of Oceaneering International shares are owned by institutional investors. Comparatively, 21.1% of Kinetik shares are owned by institutional investors. 1.3% of Oceaneering International shares are owned by company insiders. Comparatively, 3.6% of Kinetik shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility & Risk

Oceaneering International has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500. Comparatively, Kinetik has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500.

Summary

Kinetik beats Oceaneering International on 9 of the 15 factors compared between the two stocks.

About Oceaneering International

Oceaneering International, Inc. provides engineered services and products, and robotic solutions to the offshore energy, defense, aerospace, manufacturing, and entertainment industries worldwide. It operates through Subsea Robotics, Manufactured Products, Offshore Projects Group, Integrity Management & Digital Solutions, and Aerospace and Defense Technologies segments. The company offers remotely operated vehicles (ROVs) for drill support and vessel-based services, including subsea hardware installation, construction, pipeline inspection, survey and facilities inspection, maintenance, and repair; ROV tooling; and survey services, such as hydrographic survey, positioning services, and autonomous underwater vehicles for geoscience. It also provides distribution and connection systems, including production control umbilicals and field development hardware, pipeline connection, and repair systems to the energy industry; and autonomous mobile robotic technology and entertainment systems to various industries. In addition, the company offers subsea installation and intervention, including riserless light well intervention inspection, maintenance, and repair services; installation and workover control systems, and ROV workover control systems; diving services; project management and engineering; and drill pipe riser services and systems, and wellhead load relief solutions. Further, it provides asset integrity management, software and analytical solutions for the bulk cargo maritime industry, and software, digital, and connectivity solutions for the energy industry, as well as government services and products, including engineering and related manufacturing in defense and space exploration activities to the United States' government agencies and their prime contractors. Oceaneering International, Inc. was founded in 1964 and is headquartered in Houston, Texas.

About Kinetik

Kinetik Holdings Inc. operates as a midstream company in the Texas Delaware Basin. It provides gathering, transportation, compression, processing, and treating services for companies that produce natural gas, natural gas liquids, crude oil, and water. The company is headquartered in Midland, Texas.