Kinetik (NYSE:KNTK) and Flotek Industries (NYSE:FTK) Head-To-Head Contrast

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

Institutional and Insider Ownership

21.1% of Kinetik shares are owned by institutional investors. Comparatively, 10.9% of Flotek Industries shares are owned by institutional investors. 3.8% of Kinetik shares are owned by company insiders. Comparatively, 3.0% of Flotek Industries shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Kinetik and Flotek Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kinetik	6.70%	-5.74%	1.81%
Flotek Industries	6.59%	17.67%	10.86%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Kinetik and Flotek Industries, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kinetik	0	5	7	0	2.58
Flotek Industries	0	1	2	1	3.00

Kinetik presently has a consensus target price of $50.90, indicating a potential upside of 48.96%. Flotek Industries has a consensus target price of $17.50, indicating a potential upside of 16.94%. Given Kinetik’s higher possible upside, equities analysts plainly believe Kinetik is more favorable than Flotek Industries.

Risk and Volatility

Kinetik has a beta of 3.07, meaning that its stock price is 207% more volatile than the S&P 500. Comparatively, Flotek Industries has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500.

Earnings & Valuation

This table compares Kinetik and Flotek Industries”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kinetik	$1.48 billion	3.73	$244.23 million	$0.42	81.36
Flotek Industries	$220.50 million	2.03	$10.50 million	$0.89	16.81

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

Summary

Kinetik beats Flotek Industries on 10 of the 15 factors compared between the two stocks.

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.

About Flotek Industries

Flotek Industries, Inc. operates as a technology-driven green chemistry and data company that serves customers across industrial and commercial markets in the United States, the United Arab Emirates, and internationally. It operates through two segments: Chemistry Technologies (CT) and Data Analytics (DA). The CT segment designs, develops, manufactures, packages, distributes, delivers, and markets green specialty chemicals that enhance the profitability of hydrocarbon producers, as well as green specialty chemistries, and logistics and technology services. This segment primarily serves integrated oil and gas, oilfield services, independent oil and gas, national and state-owned oil, geothermal energy, solar energy, and alternative energy companies. The DA segment designs, develops, produces, sells, and supports equipment and services that create and provide valuable information on the composition and properties of energy customers' hydrocarbon fluids. It sells its products directly through a mix of in-house sales professionals, as well as contractual agency agreements. Flotek Industries, Inc. was incorporated in 1985 and is headquartered in Houston, Texas.