Archrock (NYSE:AROC – Get Free Report) and Smart Sand (NASDAQ:SND – Get Free Report) are both energy companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, valuation, earnings, analyst recommendations and risk.
Profitability
This table compares Archrock and Smart Sand’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Archrock | 22.89% | 22.33% | 7.79% |
| Smart Sand | 3.90% | 6.64% | 4.60% |
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Archrock and Smart Sand, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Archrock | 0 | 1 | 9 | 0 | 2.90 |
| Smart Sand | 0 | 0 | 1 | 0 | 3.00 |
Archrock presently has a consensus target price of $42.12, indicating a potential upside of 55.26%. Given Archrock’s higher possible upside, analysts clearly believe Archrock is more favorable than Smart Sand.
Valuation & Earnings
This table compares Archrock and Smart Sand”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Archrock | $1.49 billion | 3.19 | $322.29 million | $1.94 | 13.99 |
| Smart Sand | $330.15 million | 0.60 | $1.35 million | $0.26 | 17.62 |
Archrock has higher revenue and earnings than Smart Sand. Archrock is trading at a lower price-to-earnings ratio than Smart Sand, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Archrock has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500. Comparatively, Smart Sand has a beta of 0.43, meaning that its share price is 57% less volatile than the S&P 500.
Insider and Institutional Ownership
95.5% of Archrock shares are owned by institutional investors. Comparatively, 35.2% of Smart Sand shares are owned by institutional investors. 2.9% of Archrock shares are owned by company insiders. Comparatively, 33.5% of Smart Sand shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Summary
Archrock beats Smart Sand on 12 of the 14 factors compared between the two stocks.
About Archrock
Archrock, Inc. provides natural gas compression services to companies in the oil and natural gas industry. Its equipment helps move natural gas from wells through gathering systems and pipelines, supporting production and transportation. The company’s contract operations include supplying, operating and maintaining compression equipment at customer sites. Through its aftermarket services business, Archrock provides maintenance, repair and other support for compression equipment, including units it did not originally supply.
About Smart Sand
Smart Sand, Inc. is an integrated supplier of industrial sand and related services, with a primary focus on proppant used in hydraulic fracturing. The company mines, processes, and distributes sand for energy producers and oilfield service companies. Its products include Northern White silica sand in grades used to help keep fractures open during oil and natural gas extraction. Smart Sand also provides logistics and wellsite services intended to support the delivery and handling of proppant. Smart Sand operates sand production facilities in the Midwest and serves customers across U.S. energy-producing regions through transportation and distribution networks.
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