Analyzing Kinetik (KNTK) and Its Rivals

Kinetik (NYSE:KNTK) is one of 1,051 publicly-traded companies in the “Oil, Gas & Consumable Fuels” industry, but how does it weigh in compared to its peers? We will compare Kinetik to related companies based on the strength of its analyst recommendations, profitability, valuation, institutional ownership, earnings, risk and dividends.

Risk & Volatility

Kinetik has a beta of 0.67, meaning that its share price is 33% less volatile than the S&P 500. Comparatively, Kinetik’s peers have a beta of -3.75, meaning that their average share price is 475% less volatile than the S&P 500.

Insider and Institutional Ownership

21.1% of Kinetik shares are held by institutional investors. Comparatively, 30.8% of shares of all “Oil, Gas & Consumable Fuels” companies are held by institutional investors. 3.6% of Kinetik shares are held by company insiders. Comparatively, 15.3% of shares of all “Oil, Gas & Consumable Fuels” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

Kinetik pays an annual dividend of $3.24 per share and has a dividend yield of 5.9%. Kinetik pays out 108.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Oil, Gas & Consumable Fuels” companies pay a dividend yield of 8.9% and pay out -125.8% of their earnings in the form of a dividend. Kinetik has increased its dividend for 1 consecutive years. Kinetik lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Earnings & Valuation

This table compares Kinetik and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Kinetik	$1.99 billion	$525.93 million	18.24
Kinetik Competitors	$273.23 billion	$5.52 billion	-0.97

Kinetik’s peers have higher revenue and earnings than Kinetik. Kinetik is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a summary of current recommendations and price targets for Kinetik and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kinetik	0	7	11	1	2.68
Kinetik Competitors	5999	27054	40922	2431	2.52

Kinetik currently has a consensus price target of $56.36, indicating a potential upside of 3.31%. As a group, “Oil, Gas & Consumable Fuels” companies have a potential upside of 26.86%. Given Kinetik’s peers higher possible upside, analysts plainly believe Kinetik has less favorable growth aspects than its peers.

Profitability

This table compares Kinetik and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kinetik	25.65%	-42.78%	7.12%
Kinetik Competitors	-455.77%	19.32%	6.65%

Summary

Kinetik peers beat Kinetik on 8 of the 15 factors compared.

Kinetik Company Profile

Kinetik Holdings provides midstream services to oil and natural gas producers operating in the Permian Basin, with a focus on the Delaware Basin in West Texas and southeastern New Mexico. Its services connect producing wells to downstream markets and other energy infrastructure. The company’s operations include natural gas gathering, compression, processing and transportation, as well as crude oil gathering and produced-water gathering, recycling and disposal. Kinetik also provides related infrastructure and commercial services to its producer customers.