Comparing Archrock Partners (APLP) and Kinder Morgan (KMI)

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Archrock Partners (NYSE: KMI) and Kinder Morgan (NYSE:KMI) are both oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.

Valuation & Earnings

This table compares Archrock Partners and Kinder Morgan’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Archrock Partners $557.50 million 1.97 -$420,000.00 $0.27 56.67
Kinder Morgan $13.71 billion 2.89 $183.00 million $0.66 27.20

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

Dividends

Archrock Partners pays an annual dividend of $1.14 per share and has a dividend yield of 7.5%. Kinder Morgan pays an annual dividend of $0.80 per share and has a dividend yield of 4.5%. Archrock Partners pays out 422.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kinder Morgan pays out 121.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Archrock Partners and Kinder Morgan’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Archrock Partners -0.08% 3.74% 0.99%
Kinder Morgan -1.82% 5.07% 2.26%

Volatility & Risk

Archrock Partners has a beta of 2, meaning that its share price is 100% more volatile than the S&P 500. Comparatively, Kinder Morgan has a beta of 0.67, meaning that its share price is 33% less volatile than the S&P 500.

Insider & Institutional Ownership

44.4% of Archrock Partners shares are held by institutional investors. Comparatively, 61.6% of Kinder Morgan shares are held by institutional investors. 0.4% of Archrock Partners shares are held by company insiders. Comparatively, 14.2% of Kinder Morgan shares are held by company 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.

Analyst Recommendations

This is a breakdown of current recommendations for Archrock Partners and Kinder Morgan, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Archrock Partners 0 3 1 0 2.25
Kinder Morgan 0 3 17 0 2.85

Archrock Partners presently has a consensus price target of $16.17, suggesting a potential upside of 5.66%. Kinder Morgan has a consensus price target of $21.01, suggesting a potential upside of 17.05%. Given Kinder Morgan’s stronger consensus rating and higher probable upside, analysts clearly believe Kinder Morgan is more favorable than Archrock Partners.

Summary

Kinder Morgan beats Archrock Partners on 12 of the 16 factors compared between the two stocks.

Archrock Partners Company Profile

Archrock Partners, L.P., together with its subsidiaries, provides natural gas contract operations services to customers in the United States. The company's contract operations services primarily include designing, sourcing, owning, installing, operating, servicing, repairing, and maintaining equipment to provide natural gas compression services to its customers. It serves companies engaged in various aspects of the oil and natural gas industry, including oil and natural gas producers, processors, gatherers, transporters, and storage providers. The company markets its services through sales and field service personnel. Archrock General Partner, L.P. operates as the general partner of the company. The company was formerly known as Exterran Partners, L.P. and changed its name to Archrock Partners, L.P. in November 2015. Archrock Partners, L.P. was founded in 2006 and is based in Houston, Texas.

Kinder Morgan Company Profile

Kinder Morgan, Inc. operates as an energy infrastructure company in North America. It operates through Natural Gas Pipelines, CO2, Terminals, Products Pipelines, and Kinder Morgan Canada segments. The Natural Gas Pipelines segment owns and operates interstate and intrastate natural gas pipeline and storage systems; natural gas and crude oil gathering systems, and natural gas processing and treating facilities; natural gas liquids (NGL) fractionation facilities and transportation systems; and liquefied natural gas facilities. The CO2 segment produces, transports, and markets CO2 for recovering crude oil from mature oil fields; and owns interests in/or operates oil fields and gas processing plants, as well as operates a crude oil pipeline system in West Texas. The Terminals segment owns and operates liquids and bulk terminals that transload and store refined petroleum products, crude oil, chemicals, and ethanol, as well as bulk products, including coke, steel, and coal; and owns tankers. The Products Pipelines segment owns and operates refined petroleum products, NGL, and crude oil and condensate pipelines; and associated product terminals and petroleum pipeline transmix facilities. The Kinder Morgan Canada segment owns and operates Trans Mountain pipeline system that transports crude oil and refined petroleum products from Edmonton, Alberta, and Canada to marketing terminals and refineries in British Columbia, Canada, and the state of Washington; and Jet Fuel aviation turbine fuel pipeline that serves the Vancouver (Canada) International Airport. As of February 5, 2018, Kinder Morgan, Inc. owns or operates approximately 85,000 miles of pipelines and 152 terminals. The company was formerly known as Kinder Morgan Holdco LLC and changed its name to Kinder Morgan, Inc. in February 2011. Kinder Morgan, Inc. was founded in 1936 and is headquartered in Houston, Texas.

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