Reviewing ProPetro (NYSE:PUMP) & Kinetik (NYSE:KNTK)

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

Valuation and Earnings

This table compares Kinetik and ProPetro”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kinetik	$1.76 billion	4.19	$525.93 million	$2.57	17.80
ProPetro	$1.27 billion	1.39	$820,000.00	$0.01	1,447.20

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kinetik	29.23%	-32.70%	7.41%
ProPetro	0.06%	0.10%	0.07%

Analyst Recommendations

This is a breakdown of recent ratings for Kinetik and ProPetro, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kinetik	1	6	6	0	2.38
ProPetro	1	3	4	0	2.38

Kinetik presently has a consensus price target of $46.27, suggesting a potential upside of 1.16%. ProPetro has a consensus price target of $12.83, suggesting a potential downside of 11.32%. Given Kinetik’s stronger consensus rating and higher probable upside, research analysts clearly believe Kinetik is more favorable than ProPetro.

Institutional & Insider Ownership

21.1% of Kinetik shares are owned by institutional investors. Comparatively, 84.7% of ProPetro shares are owned by institutional investors. 3.8% of Kinetik shares are owned by insiders. Comparatively, 1.6% of ProPetro shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Kinetik has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500. Comparatively, ProPetro has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500.

Summary

Kinetik beats ProPetro on 10 of the 13 factors compared between the two stocks.

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.

About ProPetro

ProPetro Holding Corp. operates as an integrated oilfield services company. The company provides hydraulic fracturing, wireline, cementing, and other complementary oilfield completion services to upstream oil and gas companies in the Permian Basin. ProPetro Holding Corp. was founded in 2007 and is headquartered in Midland, Texas.