Head-To-Head Analysis: Kinetik (NYSE:KNTK) vs. ProPetro (NYSE:PUMP)

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

Profitability

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

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

Earnings and Valuation

This table compares ProPetro and Kinetik”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ProPetro	$1.27 billion	1.41	$820,000.00	$0.01	1,464.50
Kinetik	$1.76 billion	4.16	$525.93 million	$2.57	17.67

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.

Analyst Ratings

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

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

ProPetro currently has a consensus target price of $12.83, suggesting a potential downside of 12.37%. Kinetik has a consensus target price of $46.18, suggesting a potential upside of 1.72%. Given Kinetik’s stronger consensus rating and higher possible upside, analysts plainly believe Kinetik is more favorable than ProPetro.

Insider and Institutional Ownership

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

Risk & Volatility

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

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.