Innovex International (NYSE:INVX) and Kodiak Gas Services (NYSE:KGS) Head-To-Head Review

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

Volatility and Risk

Innovex International has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500. Comparatively, Kodiak Gas Services has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500.

Profitability

This table compares Innovex International and Kodiak Gas Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Innovex International	16.66%	8.58%	6.92%
Kodiak Gas Services	6.48%	10.35%	3.20%

Valuation & Earnings

This table compares Innovex International and Kodiak Gas Services”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Innovex International	$867.15 million	1.33	$140.32 million	$2.89	5.80
Kodiak Gas Services	$1.16 billion	2.72	$49.90 million	$0.90	39.97

Innovex International has higher earnings, but lower revenue than Kodiak Gas Services. Innovex International 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.

Analyst Recommendations

This is a summary of current ratings for Innovex International and Kodiak Gas Services, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Innovex International	1	0	1	2	3.00
Kodiak Gas Services	0	1	9	0	2.90

Innovex International currently has a consensus target price of $16.50, suggesting a potential downside of 1.55%. Kodiak Gas Services has a consensus target price of $41.10, suggesting a potential upside of 14.25%. Given Kodiak Gas Services’ higher probable upside, analysts plainly believe Kodiak Gas Services is more favorable than Innovex International.

Institutional & Insider Ownership

25.0% of Kodiak Gas Services shares are owned by institutional investors. 43.9% of Innovex International shares are owned by company insiders. Comparatively, 0.3% of Kodiak Gas Services shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Kodiak Gas Services beats Innovex International on 8 of the 15 factors compared between the two stocks.

About Innovex International

Innovex International, Inc. engages in the provision of solutions for both onshore and offshore applications within the oil and gas industry. The company was founded on September 15, 2016 and is headquartered in Humble, TX.

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.