Smart Sand (NASDAQ:SND) versus Kinetik (NYSE:KNTK) Financial Comparison

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Smart Sand and Kinetik, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Smart Sand	0	0	0	0	0.00
Kinetik	0	3	6	0	2.67

Kinetik has a consensus target price of $55.5556, indicating a potential upside of 33.00%. Given Kinetik’s stronger consensus rating and higher probable upside, analysts plainly believe Kinetik is more favorable than Smart Sand.

Risk & Volatility

Smart Sand has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500. Comparatively, Kinetik has a beta of 3.03, suggesting that its stock price is 203% more volatile than the S&P 500.

Institutional & Insider Ownership

35.2% of Smart Sand shares are owned by institutional investors. Comparatively, 21.1% of Kinetik shares are owned by institutional investors. 34.0% of Smart Sand shares are owned by company insiders. Comparatively, 3.8% of Kinetik shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Smart Sand	-7.15%	-8.30%	-5.86%
Kinetik	10.74%	-8.05%	2.47%

Earnings & Valuation

This table compares Smart Sand and Kinetik”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Smart Sand	$293.88 million	0.28	$2.99 million	($0.54)	-3.50
Kinetik	$1.48 billion	4.45	$244.23 million	$0.95	43.97

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

Summary

Kinetik beats Smart Sand on 12 of the 14 factors compared between the two stocks.

About Smart Sand

Smart Sand, Inc., an integrated frac and industrial sand supply and services company, engages in the excavation, processing, and sale of sands or proppant for use in hydraulic fracturing operations in the oil and gas industry in the United States. It also provides proppant logistics services; and wellsite storage solutions through SmartSystems products and services. The company sells its products primarily to oil and natural gas exploration and production companies, oilfield service companies, and industrial manufacturers. Smart Sand, Inc. was incorporated in 2011 and is headquartered in Spring, 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.