Kodiak Gas Services (NYSE:KGS) & Tetra Technologies (NYSE:TTI) Critical Contrast

Tetra Technologies (NYSE:TTI) and Kodiak Gas Services (NYSE:KGS) are both energy companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, earnings, profitability, risk and valuation.

Volatility & Risk

Tetra Technologies has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500. Comparatively, Kodiak Gas Services has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500.

Valuation and Earnings

This table compares Tetra Technologies and Kodiak Gas Services”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tetra Technologies	$641.83 million	1.40	$3.01 million	$0.04	152.12
Kodiak Gas Services	$1.31 billion	4.19	$80.52 million	$0.84	64.38

Kodiak Gas Services has higher revenue and earnings than Tetra Technologies. Kodiak Gas Services is trading at a lower price-to-earnings ratio than Tetra Technologies, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations for Tetra Technologies and Kodiak Gas Services, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tetra Technologies	0	1	3	1	3.00
Kodiak Gas Services	0	2	10	0	2.83

Tetra Technologies currently has a consensus price target of $11.17, indicating a potential upside of 83.51%. Kodiak Gas Services has a consensus price target of $78.33, indicating a potential upside of 44.86%. Given Tetra Technologies’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Tetra Technologies is more favorable than Kodiak Gas Services.

Institutional and Insider Ownership

70.2% of Tetra Technologies shares are owned by institutional investors. Comparatively, 24.9% of Kodiak Gas Services shares are owned by institutional investors. 6.3% of Tetra Technologies shares are owned by insiders. Comparatively, 0.6% of Kodiak Gas Services shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Tetra Technologies and Kodiak Gas Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tetra Technologies	0.97%	9.11%	4.14%
Kodiak Gas Services	5.77%	11.92%	3.70%

Summary

Tetra Technologies beats Kodiak Gas Services on 8 of the 15 factors compared between the two stocks.

About Tetra Technologies

TETRA Technologies, Inc., together with its subsidiaries, operates as an energy services and solutions company. It operates through two segments, Completion Fluids & Products Division and Water & Flowback Services. The Completion Fluids & Products segment manufactures and markets clear brine fluids, additives, and associated products and services to the oil and gas industry for use in well drilling, completion, and workover operations in the United States, as well as in Latin America, Europe, Asia, the Middle East, and Africa. This segment also markets liquid and dry calcium chloride products; and TETRA PureFlow ultra-pure zinc bromide to battery technology companies. The Water & Flowback Services segment provides water management services for onshore oil and gas operators. This segment also offers frac flowback, production well testing, and other associated services in oil and gas producing regions in the United States, as well as in various basins in Latin America, Africa, Europe, and the Middle East. TETRA Technologies, Inc. was incorporated in 1981 and is headquartered in The Woodlands, Texas.

About Kodiak Gas Services

Kodiak Gas Services, Inc. operates contract compression infrastructure for customers in the oil and gas industry in the United States. It operates in two segments, Compression Operations and Other Services. The Compression Operations segment operates company-owned and customer-owned compression infrastructure to enable the production, gathering, and transportation of natural gas and oil. The Other Services segment provides a range of contract services, including station construction, maintenance and overhaul, and other ancillary time and material-based offerings. The company was formerly known as Frontier TopCo, Inc. Kodiak Gas Services, Inc. was founded in 2010 and is headquartered in The Woodlands, Texas.