Comparing Kinetik (NYSE:KNTK) & Drilling Tools International (NASDAQ:DTI)

Drilling Tools International (NASDAQ:DTI) and Kinetik (NYSE:KNTK) are both energy companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Volatility and Risk

Drilling Tools International has a beta of -0.36, meaning that its stock price is 136% less volatile than the S&P 500. Comparatively, Kinetik has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500.

Earnings & Valuation

This table compares Drilling Tools International and Kinetik”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Drilling Tools International	$154.45 million	0.91	$3.01 million	($0.19)	-21.00
Kinetik	$1.48 billion	4.53	$244.23 million	$0.42	98.98

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

Profitability

This table compares Drilling Tools International and Kinetik’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Drilling Tools International	-3.93%	1.12%	0.60%
Kinetik	6.70%	-5.74%	1.81%

Institutional & Insider Ownership

2.8% of Drilling Tools International shares are held by institutional investors. Comparatively, 21.1% of Kinetik shares are held by institutional investors. 14.7% of Drilling Tools International shares are held by company insiders. Comparatively, 3.8% of Kinetik shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Drilling Tools International and Kinetik, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Drilling Tools International	1	1	0	0	1.50
Kinetik	1	6	6	0	2.38

Kinetik has a consensus price target of $46.00, indicating a potential upside of 10.66%. Given Kinetik’s stronger consensus rating and higher probable upside, analysts plainly believe Kinetik is more favorable than Drilling Tools International.

Summary

Kinetik beats Drilling Tools International on 12 of the 14 factors compared between the two stocks.

About Drilling Tools International

Drilling Tools International Corporation provides oilfield equipment and services to oil and natural gas sectors in North America, Europe, and the Middle East. It offers downhole tool rentals, machining, and inspection services to support the global drilling and wellbore construction industry. The company also provides products are bottom hole assembly components, such as stabilizers, subs, non-magnetic and steel drill collars, hole openers, and roller reamers, as well as drill pipe and drill pipe accessories; ancillary equipment and handling tools to support its rental platform, including float valves, ring gauges, tool baskets, lift bail, lift subs, mud magnets, elevators, bracket and bail assemblies, slips, tongs, stabbing guides and safety clamps; and blowout preventers, and pressure control accessory equipment. In addition, it offers tool rental services, which consists of rental, inspection, machining, and repair services; rents downhole drilling tools used in horizontal and directional drilling of oil and natural gas; rents kellys, pip joints, work strings; maintains a fleet of rental equipment consisting of drill collars, stabilizers, crossover subs, wellbore conditioning tools, drill pipe, hevi-wate drill pipe, and tubing; rents surface control equipment, such as blowout preventers and handling tools; and provides downhole products for producing wells. Drilling Tools International Corporation is headquartered in Houston, 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.