Carbo Ceramics (NYSE: CRR) and Archrock (NYSE:AROC) are both small-cap oils/energy companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, risk, dividends, earnings and valuation.

Volatility & Risk

Carbo Ceramics has a beta of 1.91, indicating that its share price is 91% more volatile than the S&P 500. Comparatively, Archrock has a beta of 3.5, indicating that its share price is 250% more volatile than the S&P 500.

Institutional & Insider Ownership

70.2% of Carbo Ceramics shares are held by institutional investors. Comparatively, 90.9% of Archrock shares are held by institutional investors. 16.2% of Carbo Ceramics shares are held by insiders. Comparatively, 2.5% of Archrock shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Carbo Ceramics and Archrock’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Carbo Ceramics -79.49% -16.48% -13.73%
Archrock -8.62% -2.93% -0.83%

Dividends

Archrock pays an annual dividend of $0.48 per share and has a dividend yield of 4.8%. Carbo Ceramics does not pay a dividend. Archrock pays out -49.0% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares Carbo Ceramics and Archrock’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Carbo Ceramics $103.05 million 2.49 -$80.12 million ($4.69) -2.01
Archrock $807.07 million 0.88 -$54.55 million ($0.98) -10.25

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

Analyst Recommendations

This is a summary of recent ratings and target prices for Carbo Ceramics and Archrock, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Carbo Ceramics 1 5 1 0 2.00
Archrock 0 6 1 0 2.14

Carbo Ceramics presently has a consensus target price of $11.00, suggesting a potential upside of 16.53%. Archrock has a consensus target price of $13.15, suggesting a potential upside of 30.85%. Given Archrock’s stronger consensus rating and higher probable upside, analysts plainly believe Archrock is more favorable than Carbo Ceramics.

Summary

Archrock beats Carbo Ceramics on 12 of the 14 factors compared between the two stocks.

About Carbo Ceramics

CARBO Ceramics Inc. is a technology company that provides products and services to the global oil and gas and industrial markets. The Company operates through two segments: Oilfield Technologies and Services, and Environmental Products and Services. The Company’s oilfield technologies and services segment includes the manufacturing and selling of proppant products for use primarily in the hydraulic fracturing of oil and natural gas wells, Fracpro software for the design of fracture treatments, and StrataGen consulting services for the optimizing of well completions. The Company’s environmental products and services segment is intended to protect operators’ assets, minimize environmental risks, and lower lease operating expense (LOE). The Company, through Asset Guard Products Inc. (AGPI), provides spill prevention, containment and countermeasure systems for the oil and gas industry. The Company manufactures various ceramic proppants.

About Archrock

Archrock, Inc. is a natural gas contract operations services company. The Company also provides natural gas compression services to customers in the oil and natural gas industry throughout the United States and supplies aftermarket services to customers that own compression equipment in the United States. The Company operates through two segments: contract operations and aftermarket services. The contract operations segment primarily provides natural gas compression services to meet specific customer requirements. The Company provides contract operations services, including the personnel, equipment, tools, materials and supplies to meet its customers’ natural gas compression needs. The aftermarket services segment provides a range of services to support the compression needs of customers, from parts sales and normal maintenance services to full operation of a customer’s owned assets.

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