Analyzing Archrock Partners, L.P. (APLP) and Matrix Service (MTRX)

Archrock Partners, L.P. (NASDAQ: APLP) and Matrix Service (NASDAQ:MTRX) are both small-cap oil related services and equipment – nec companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, risk, valuation, earnings, institutional ownership, analyst recommendations and profitability.

Valuation and Earnings

This table compares Archrock Partners, L.P. and Matrix Service’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Archrock Partners, L.P. $562.36 million 1.62 -$10.75 million ($0.26) -50.00
Matrix Service $1.20 billion 0.34 -$180,000.00 ($0.22) -69.77

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Archrock Partners, L.P. and Matrix Service, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Archrock Partners, L.P. 0 3 1 0 2.25
Matrix Service 0 3 0 0 2.00

Archrock Partners, L.P. currently has a consensus price target of $17.50, suggesting a potential upside of 34.62%. Given Archrock Partners, L.P.’s stronger consensus rating and higher probable upside, equities analysts clearly believe Archrock Partners, L.P. is more favorable than Matrix Service.

Insider and Institutional Ownership

41.2% of Archrock Partners, L.P. shares are owned by institutional investors. Comparatively, 85.2% of Matrix Service shares are owned by institutional investors. 0.4% of Archrock Partners, L.P. shares are owned by insiders. Comparatively, 2.5% of Matrix Service shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Archrock Partners, L.P. and Matrix Service’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Archrock Partners, L.P. -3.10% 4.32% 1.15%
Matrix Service -0.51% -1.75% -0.96%

Dividends

Archrock Partners, L.P. pays an annual dividend of $1.14 per share and has a dividend yield of 8.8%. Matrix Service does not pay a dividend. Archrock Partners, L.P. pays out -438.5% of its earnings in the form of a dividend.

Volatility and Risk

Archrock Partners, L.P. has a beta of 2.29, meaning that its share price is 129% more volatile than the S&P 500. Comparatively, Matrix Service has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500.

Summary

Archrock Partners, L.P. beats Matrix Service on 9 of the 15 factors compared between the two stocks.

Archrock Partners, L.P. Company Profile

Archrock Partners, L.P. is engaged in natural gas compression industry in the United States. The Company’s contract operations services include designing, sourcing, owning, installing, operating, servicing, repairing and maintaining equipment to provide natural gas compression services to its customers. It provides contract operations services, including the personnel, equipment, tools, materials and supplies to meet its customers’ natural gas compression needs. Archrock General Partner, L.P., its general partner, is a subsidiary of Archrock and has responsibility for conducting its business and for managing its operations. The Company utilizes both slow and high speed reciprocating compressors primarily driven by internal natural gas fired combustion engines. Its customers include companies engaged in various aspects of the oil and natural gas industry, including natural gas producers, processors, gatherers, transporters and storage providers.

Matrix Service Company Profile

Matrix Service Company provides engineering, fabrication, infrastructure, construction and maintenance services primarily to the oil, gas, power, petrochemical, industrial, mining and minerals markets. The Company’s segments include Electrical Infrastructure, Oil Gas & Chemical, Storage Solutions and Industrial. The Electrical Infrastructure segment primarily includes construction and maintenance services to a range of power generation facilities, such as combined cycle plants, natural gas fired power stations and renewable energy installations. The Oil Gas & Chemical segment includes turnaround activities, plant maintenance services and construction in the downstream petroleum industry. The Storage Solutions segment includes new construction of crude and refined products aboveground storage tanks (ASTs), as well as planned and emergency maintenance services. The Industrial segment includes construction and maintenance work in the iron and steel and mining and minerals industries.

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