Kinetik (NYSE:KNTK) versus NXT Energy Solutions (OTCMKTS:NSFDF) Financial Contrast

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

Risk & Volatility

Kinetik has a beta of 3.11, suggesting that its stock price is 211% more volatile than the S&P 500. Comparatively, NXT Energy Solutions has a beta of 1.53, suggesting that its stock price is 53% more volatile than the S&P 500.

Institutional & Insider Ownership

21.1% of Kinetik shares are held by institutional investors. Comparatively, 26.2% of NXT Energy Solutions shares are held by institutional investors. 3.8% of Kinetik shares are held by company insiders. Comparatively, 34.1% of NXT Energy Solutions shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Kinetik and NXT Energy Solutions, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kinetik	0	5	6	0	2.55
NXT Energy Solutions	0	0	0	0	0.00

Kinetik currently has a consensus price target of $54.67, indicating a potential upside of 38.40%. Given Kinetik’s stronger consensus rating and higher probable upside, analysts plainly believe Kinetik is more favorable than NXT Energy Solutions.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kinetik	8.21%	-6.16%	1.95%
NXT Energy Solutions	N/A	-65.19%	-22.05%

Valuation & Earnings

This table compares Kinetik and NXT Energy Solutions”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kinetik	$1.48 billion	4.31	$244.23 million	$0.74	53.38
NXT Energy Solutions	$470,000.00	76.97	-$6.62 million	($0.04)	-8.30

Kinetik has higher revenue and earnings than NXT Energy Solutions. NXT Energy Solutions 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 NXT Energy Solutions on 11 of the 14 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 NXT Energy Solutions

NXT Energy Solutions Inc., a technology company, provides services to the oil and gas industry through its proprietary stress field detection (SFD) technology worldwide. Its SFD technology, a remote sensing airborne survey system utilizes quantum-scale sensors to detect gravity field perturbations in an airborne survey method which can be used onshore and offshore to remotely identify traps and reservoirs with hydrocarbon and geothermal exploration potential. The company was formerly known as Energy Exploration Technologies Inc. and changed its name to NXT Energy Solutions Inc. in September 2008. NXT Energy Solutions Inc. was incorporated in 1994 and is headquartered in Calgary, Canada.