Comparing Helix Energy Solutions Group (NYSE:HLX) & Kinetik (NYSE:KNTK)

Helix Energy Solutions Group (NYSE:HLX) and Kinetik (NYSE:KNTK) are both energy companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, earnings, risk and analyst recommendations.

Profitability

This table compares Helix Energy Solutions Group and Kinetik’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Helix Energy Solutions Group	3.92%	3.23%	1.90%
Kinetik	10.74%	-8.05%	2.47%

Earnings & Valuation

This table compares Helix Energy Solutions Group and Kinetik”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Helix Energy Solutions Group	$1.36 billion	0.68	$55.64 million	$0.32	19.56
Kinetik	$1.48 billion	4.55	$244.23 million	$0.95	44.98

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

Risk and Volatility

Helix Energy Solutions Group has a beta of 1.57, meaning that its share price is 57% more volatile than the S&P 500. Comparatively, Kinetik has a beta of 3, meaning that its share price is 200% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Helix Energy Solutions Group and Kinetik, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Helix Energy Solutions Group	0	1	2	0	2.67
Kinetik	0	3	6	0	2.67

Helix Energy Solutions Group currently has a consensus target price of $12.00, suggesting a potential upside of 91.69%. Kinetik has a consensus target price of $55.56, suggesting a potential upside of 30.02%. Given Helix Energy Solutions Group’s higher possible upside, equities research analysts clearly believe Helix Energy Solutions Group is more favorable than Kinetik.

Institutional & Insider Ownership

91.3% of Helix Energy Solutions Group shares are owned by institutional investors. Comparatively, 21.1% of Kinetik shares are owned by institutional investors. 6.6% of Helix Energy Solutions Group shares are owned by insiders. Comparatively, 3.8% of Kinetik shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Kinetik beats Helix Energy Solutions Group on 9 of the 13 factors compared between the two stocks.

About Helix Energy Solutions Group

Helix Energy Solutions Group, Inc., together with its subsidiaries, an offshore energy services company, provides specialty services to the offshore energy industry in Brazil, the Gulf of Mexico, the East Coast of the United States, North Sea, the Asia Pacific, and West Africa regions. The company operates through four segments: Well Intervention, Robotics, Production Facilities, and Shallow Water Abandonment segments. It engages in the installation of flowlines, control umbilicals, and manifold assemblies and risers; trenching and burial of pipelines; installation and tie-in of riser and manifold assembly; commissioning, testing, and inspection activities; and provision of cable and umbilical lay, and connection services. The company also provides well intervention, intervention engineering, and production enhancement services; coiled tubing operations; inspection, repair, and maintenance of production structures, trees, jumpers, risers, pipelines, and subsea equipment; and related support services. In addition, it offers reclamation and remediation services; well plug and abandonment services; pipeline, cable and umbilical abandonment services; and site inspections. Additionally, the company offers oil and natural gas processing facilities and services; and fast response system, as well as site clearance and subsea support services. Further, it provides offshore oilfield decommissioning and reclamation, project management, engineered solutions, intervention, maintenance, repair, heavy lift, and commercial diving services. It serves independent oil and gas producers and suppliers, pipeline transmission companies, renewable energy companies, and offshore engineering and construction firms. The company was formerly known as Cal Dive International, Inc. and changed its name to Helix Energy Solutions Group, Inc. in March 2006. Helix Energy Solutions Group, Inc. was incorporated in 1979 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.