Archrock (NYSE: RMP) and Rice Midstream Partners (NYSE:RMP) are both small-cap oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, risk, profitability, analyst recommendations and earnings.

Valuation & Earnings

This table compares Archrock and Rice Midstream Partners’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Archrock $794.66 million 2.03 $18.95 million ($0.20) -62.25
Rice Midstream Partners $294.69 million 595.09 $177.97 million N/A N/A

Rice Midstream Partners has lower revenue, but higher earnings than Archrock.

Analyst Ratings

This is a summary of recent ratings and target prices for Archrock and Rice Midstream Partners, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Archrock 0 2 5 0 2.71
Rice Midstream Partners 0 7 3 0 2.30

Archrock presently has a consensus price target of $14.63, suggesting a potential upside of 17.47%. Rice Midstream Partners has a consensus price target of $22.50, suggesting a potential downside of 98.69%. Given Archrock’s stronger consensus rating and higher possible upside, research analysts plainly believe Archrock is more favorable than Rice Midstream Partners.

Risk and Volatility

Archrock has a beta of 2.84, meaning that its stock price is 184% more volatile than the S&P 500. Comparatively, Rice Midstream Partners has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500.

Dividends

Archrock pays an annual dividend of $0.53 per share and has a dividend yield of 4.3%. Rice Midstream Partners pays an annual dividend of $1.22 per share and has a dividend yield of 0.1%. Archrock pays out -265.0% of its earnings in the form of a dividend. Rice Midstream Partners has raised its dividend for 2 consecutive years.

Profitability

This table compares Archrock and Rice Midstream Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Archrock 4.19% 0.45% 0.14%
Rice Midstream Partners 59.40% 10.01% 8.61%

Insider & Institutional Ownership

88.9% of Archrock shares are held by institutional investors. Comparatively, 74.1% of Rice Midstream Partners shares are held by institutional investors. 2.5% of Archrock shares are held 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.

Summary

Archrock beats Rice Midstream Partners on 9 of the 15 factors compared between the two stocks.

Archrock Company Profile

Archrock, Inc. engages in the natural gas contract operations services business in the United States. The company provides natural gas compression services to customers in the oil and natural gas industry. It also offers aftermarket services, such as parts and components; and operation, maintenance, overhaul, and reconfiguration services to customers who own compression equipment. The company was formerly known as Exterran Holdings, Inc. and changed its name to Archrock, Inc. in November 2015. Archrock, Inc. was founded in 1990 and is headquartered in Houston, Texas.

Rice Midstream Partners Company Profile

Rice Midstream Partners LP owns, operates, develops, and acquires midstream assets in the Appalachian Basin. It operates in two segments, Gathering and Compression, and Water Services. Its natural gas gathering and compression assets consist of natural gas gathering and compression systems that serve producers in the dry gas core of the Marcellus Shale in southwestern Pennsylvania. The company also provides water services to support well completion activities, as well as to collect and recycle or dispose of flowback and produced water in Washington and Greene counties, Pennsylvania; and Belmont County, Ohio. Rice Midstream Management LLC serves as the general partner of Rice Midstream Partners LP. The company was founded in 2014 and is headquartered in Pittsburgh, Pennsylvania.

Receive News & Ratings for Archrock Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Archrock and related companies with MarketBeat.com's FREE daily email newsletter.