Analyzing Kinetik (NYSE:KNTK) & Halliburton (NYSE:HAL)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kinetik	10.74%	-8.05%	2.47%
Halliburton	8.37%	21.45%	8.85%

Analyst Ratings

This is a summary of recent ratings for Kinetik and Halliburton, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kinetik	0	3	6	0	2.67
Halliburton	0	8	12	0	2.60

Kinetik presently has a consensus price target of $55.5556, suggesting a potential upside of 31.87%. Halliburton has a consensus price target of $31.00, suggesting a potential upside of 42.79%. Given Halliburton’s higher probable upside, analysts clearly believe Halliburton is more favorable than Kinetik.

Risk and Volatility

Kinetik has a beta of 3.03, indicating that its share price is 203% more volatile than the S&P 500. Comparatively, Halliburton has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500.

Valuation and Earnings

This table compares Kinetik and Halliburton”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kinetik	$1.48 billion	4.49	$244.23 million	$0.95	44.35
Halliburton	$22.94 billion	0.81	$2.50 billion	$2.14	10.14

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

Dividends

Kinetik pays an annual dividend of $3.12 per share and has a dividend yield of 7.4%. Halliburton pays an annual dividend of $0.68 per share and has a dividend yield of 3.1%. Kinetik pays out 328.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Halliburton pays out 31.8% of its earnings in the form of a dividend. Kinetik has increased its dividend for 1 consecutive years and Halliburton has increased its dividend for 4 consecutive years.

Insider & Institutional Ownership

21.1% of Kinetik shares are held by institutional investors. Comparatively, 85.2% of Halliburton shares are held by institutional investors. 3.8% of Kinetik shares are held by insiders. Comparatively, 0.6% of Halliburton shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Halliburton beats Kinetik on 10 of the 17 factors compared between the two stocks.

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.

About Halliburton

Halliburton Company provides products and services to the energy industry worldwide. It operates through two segments, Completion and Production, and Drilling and Evaluation. The Completion and Production segment offers production enhancement services that include stimulation and sand control services; cementing services, such as well bonding and casing, and casing equipment; and completion tools that offer downhole solutions and services, including well completion products and services, intelligent well completions, and service tools, as well as liner hanger, sand control, and multilateral systems. This segment also provides electrical submersible pumps, as well as artificial lift services; production solutions comprising coiled tubing, hydraulic workover units, downhole tools, and pumping and nitrogen services; pipeline and process services, such as pre-commissioning, commissioning, maintenance, and decommissioning; and specialty chemicals and services. The Drilling and Evaluation segment offers drilling fluid systems, performance additives, completion fluids, solids control, specialized testing equipment, and waste management services; drilling systems and services; wireline and perforating services consists of open-hole logging, and cased-hole and slickline; and drill bits and services comprising roller cone rock bits, fixed cutter bits, hole enlargement, and related downhole tools and services, as well as coring equipment and services. This segment also provides cloud based digital services and artificial intelligence solutions on an open architecture for subsurface insights, integrated well construction, and reservoir and production management; testing and subsea services, such as acquisition and analysis of reservoir information and optimization solutions; and project management and integrated asset management services. Halliburton Company was founded in 1919 and is based in Houston, Texas.