Comparing Kodiak Gas Services (NYSE:KGS) and Matrix Service (NASDAQ:MTRX)

Kodiak Gas Services (NYSE:KGS) and Matrix Service (NASDAQ:MTRX) are both energy companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, valuation, risk and earnings.

Insider & Institutional Ownership

25.0% of Kodiak Gas Services shares are held by institutional investors. Comparatively, 78.4% of Matrix Service shares are held by institutional investors. 0.3% of Kodiak Gas Services shares are held by company insiders. Comparatively, 4.1% of Matrix Service shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Kodiak Gas Services has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500. Comparatively, Matrix Service 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 Kodiak Gas Services and Matrix Service”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kodiak Gas Services	$1.16 billion	2.63	$49.90 million	$0.90	38.66
Matrix Service	$728.21 million	0.56	-$24.98 million	($0.81)	-18.07

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

Profitability

This table compares Kodiak Gas Services and Matrix Service’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kodiak Gas Services	6.48%	10.35%	3.20%
Matrix Service	-3.04%	-14.08%	-4.28%

Analyst Ratings

This is a breakdown of current ratings and target prices for Kodiak Gas Services and Matrix Service, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kodiak Gas Services	0	1	9	0	2.90
Matrix Service	0	0	1	0	3.00

Kodiak Gas Services currently has a consensus target price of $41.10, suggesting a potential upside of 18.14%. Matrix Service has a consensus target price of $20.00, suggesting a potential upside of 36.61%. Given Matrix Service’s stronger consensus rating and higher probable upside, analysts plainly believe Matrix Service is more favorable than Kodiak Gas Services.

Summary

Kodiak Gas Services beats Matrix Service on 10 of the 14 factors compared between the two stocks.

About Kodiak Gas Services

Kodiak Gas Services, Inc. operates contract compression infrastructure for customers in the oil and gas industry in the United States. It operates in two segments, Compression Operations and Other Services. The Compression Operations segment operates company-owned and customer-owned compression infrastructure to enable the production, gathering, and transportation of natural gas and oil. The Other Services segment provides a range of contract services, including station construction, maintenance and overhaul, and other ancillary time and material-based offerings. The company was formerly known as Frontier TopCo, Inc. Kodiak Gas Services, Inc. was founded in 2010 and is headquartered in The Woodlands, Texas.

About Matrix Service

Matrix Service Company provides engineering, fabrication, construction, and maintenance services to support critical energy infrastructure and industrial markets in the United States, Canada, and internationally. It operates through three segments: Utility and Power Infrastructure; Process and Industrial Facilities; and Storage and Terminal Solutions. The Utility and Power Infrastructure segment offers power delivery services, including construction of new substations, upgrades of existing substations, transmission and distribution line installations, and upgrades and maintenance, and emergency and storm restoration services. This segment also provides engineering, fabrication, and construction services for LNG utility peak shaving facilities; and construction and maintenance services to power generation facilities, including natural gas fired facilities. The Process and Industrial Facilities segment engages in the refining and processing of crude oil; fractionating and marketing of natural, gas and natural gas liquids; and offers plant maintenance, turnarounds, engineering, industrial cleaning services, and capital construction services. The Storage and Terminal Solutions segment undertakes work related to aboveground crude oil and refined product storage tanks and terminals; engineering, procurement, fabrication, and construction services related to cryogenic and other specialty tanks and terminals for LNG, NGLs, hydrogen, ammonia, propane, butane, liquid nitrogen/liquid oxygen, and liquid petroleum; and provides plant work, truck and rail loading/offloading facilities, and marine structures, as well as storage tank and terminal maintenance and repair. This segment also manufactures and sells precision engineered specialty tank products, including geodesic domes, aluminum internal floating roofs, floating suction and skimmer systems, roof drain systems, and floating roof seals. Matrix Service Company was founded in 1984 and is headquartered in Tulsa, Oklahoma.