Head-To-Head Survey: KLX Energy Services (NASDAQ:KLXE) and Kinetik (NYSE:KNTK)

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

Profitability

This table compares KLX Energy Services and Kinetik’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
KLX Energy Services	-12.11%	N/A	-18.63%
Kinetik	29.23%	-32.70%	7.41%

Valuation and Earnings

This table compares KLX Energy Services and Kinetik”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KLX Energy Services	$636.60 million	0.09	-$77.10 million	($4.18)	-0.67
Kinetik	$1.76 billion	4.19	$525.93 million	$2.57	17.82

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

Institutional and Insider Ownership

42.7% of KLX Energy Services shares are owned by institutional investors. Comparatively, 21.1% of Kinetik shares are owned by institutional investors. 5.3% of KLX Energy Services shares are owned by company insiders. Comparatively, 3.8% of Kinetik shares are owned by company 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.

Risk & Volatility

KLX Energy Services has a beta of 0.4, meaning that its stock price is 60% 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.

Analyst Recommendations

This is a breakdown of current ratings for KLX Energy Services and Kinetik, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KLX Energy Services	1	1	0	0	1.50
Kinetik	1	6	6	0	2.38

Kinetik has a consensus price target of $46.18, indicating a potential upside of 0.83%. Given Kinetik’s stronger consensus rating and higher probable upside, analysts plainly believe Kinetik is more favorable than KLX Energy Services.

Summary

Kinetik beats KLX Energy Services on 11 of the 14 factors compared between the two stocks.

About KLX Energy Services

KLX Energy Services Holdings, Inc. provides drilling, completions, production, and well intervention services and products to the onshore oil and gas producing regions of the United States. The company operates through three segments: Southwest, Rocky Mountains, and Northeast/Mid-Con. It provides directional drilling services; downhole navigational and rental tools businesses and support services, including well planning, site supervision, accommodation rentals, and other drilling rentals; and various technologies, including gamma ray, azimuthal gamma ray, real-time continuous inclination and azimuth, rotary steerable, pressure-while-drilling, mode shifting, stick-slip and destructive dynamics, dynamic sequencing and real-time shock, and vibration modules. The company also offers coiled tubing and nitrogen services; wireline services, including pump down perforating, logging, and pipe recover; pressure control products and services; wellhead and hydraulic fracturing rental products and services; flowback and testing services; thru-tubing technologies and services; rig assist snubbing services; cementing products and services; acidizing and pressure pumping services; and downhole completion tools, such as toe sleeves, wet shoe cementing bypass subs, composite plugs, dissolvable plugs, liner hangers, stage cementing tools, inflatables, float and casing equipment, and retrievable completion tools. In addition, it provides production services comprising maintenance-related intervention services; production blow out preventers; mechanical wireline services; slick line services; hydro-testing services; premium tubulars; and other specialized production tools. Further, the company provides intervention services consisting of technicians and equipment that are focused on providing customers engineered solutions to downhole complications. KLX Energy Services Holdings, Inc. was incorporated in 2018 and is headquartered in Houston, 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.