Contrasting ProPetro (NYSE:PUMP) & Kinetik (NYSE:KNTK)

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

Valuation and Earnings

This table compares ProPetro and Kinetik”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ProPetro	$1.27 billion	1.41	$820,000.00	$0.01	1,470.40
Kinetik	$1.76 billion	4.27	$525.93 million	$2.57	18.13

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

Risk & Volatility

ProPetro has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500. Comparatively, Kinetik has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500.

Institutional and Insider Ownership

84.7% of ProPetro shares are owned by institutional investors. Comparatively, 21.1% of Kinetik shares are owned by institutional investors. 1.6% of ProPetro shares are owned by insiders. Comparatively, 3.8% of Kinetik shares are owned by 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ProPetro	0.06%	0.10%	0.07%
Kinetik	29.23%	-32.70%	7.41%

Analyst Recommendations

This is a breakdown of recent ratings for ProPetro and Kinetik, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ProPetro	1	3	4	0	2.38
Kinetik	1	6	6	0	2.38

ProPetro currently has a consensus target price of $12.83, indicating a potential downside of 12.72%. Kinetik has a consensus target price of $46.27, indicating a potential downside of 0.68%. Given Kinetik’s stronger consensus rating and higher probable upside, analysts plainly believe Kinetik is more favorable than ProPetro.

Summary

Kinetik beats ProPetro on 10 of the 13 factors compared between the two stocks.

About ProPetro

ProPetro Holding Corp. operates as an integrated oilfield services company. The company provides hydraulic fracturing, wireline, cementing, and other complementary oilfield completion services to upstream oil and gas companies in the Permian Basin. ProPetro Holding Corp. was founded in 2007 and is headquartered in Midland, 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.