Anadarko Petroleum (NASDAQ:APC) vs. Kinetik (NYSE:KNTK) Financial Review

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

Earnings and Valuation

This table compares Anadarko Petroleum and Kinetik”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Anadarko Petroleum	$5.58 billion	0.03	$32.73 million	$0.69	21.78
Kinetik	$1.76 billion	4.70	$525.93 million	$2.76	18.50

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

Institutional and Insider Ownership

21.1% of Kinetik shares are owned by institutional investors. 0.5% of Anadarko Petroleum shares are owned by company insiders. Comparatively, 3.6% of Kinetik shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Anadarko Petroleum and Kinetik, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Anadarko Petroleum	1	2	3	1	2.57
Kinetik	0	6	11	2	2.79

Anadarko Petroleum presently has a consensus price target of $21.80, indicating a potential upside of 45.04%. Kinetik has a consensus price target of $54.00, indicating a potential upside of 5.78%. Given Anadarko Petroleum’s higher possible upside, research analysts clearly believe Anadarko Petroleum is more favorable than Kinetik.

Dividends

Anadarko Petroleum pays an annual dividend of $2.00 per share and has a dividend yield of 13.3%. Kinetik pays an annual dividend of $3.24 per share and has a dividend yield of 6.3%. Anadarko Petroleum pays out 289.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kinetik pays out 117.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kinetik has raised its dividend for 1 consecutive years.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Anadarko Petroleum	N/A	N/A	N/A
Kinetik	26.19%	-38.96%	7.07%

Summary

Kinetik beats Anadarko Petroleum on 12 of the 17 factors compared between the two stocks.

About Anadarko Petroleum

Anadarko Petroleum Corporation engages in the exploration, development, production, and marketing of oil and gas properties. It operates through three segments: Exploration and Production, WES Midstream, and Other Midstream. The company explores for and produces oil, natural gas, and natural gas liquids (NGLs). It is also involved in gathering, processing, treating, and transporting oil, natural-gas, and NGLs production, as well as the gathering and disposal of produced water. The company's oil and natural gas properties are located in the United States onshore and deepwater Gulf of Mexico; and Algeria, Ghana, Mozambique, Colombia, Peru, and other countries. As of December 31, 2018, it had approximately 1.5 billion barrels of oil equivalent of proved reserves. The company was founded in 1959 and is headquartered in The Woodlands, 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.