Kinetik (NYSE:KNTK) versus Anadarko Petroleum (NASDAQ:APC) Head-To-Head Comparison

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

Dividends

Kinetik pays an annual dividend of $3.24 per share and has a dividend yield of 6.3%. Anadarko Petroleum pays an annual dividend of $2.00 per share and has a dividend yield of 12.4%. 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. 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 has raised its dividend for 1 consecutive years.

Institutional and Insider Ownership

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kinetik	$1.76 billion	4.73	$525.93 million	$2.76	18.62
Anadarko Petroleum	$5.58 billion	0.04	$32.73 million	$0.69	23.39

Kinetik has higher earnings, but lower revenue 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.

Analyst Recommendations

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

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

Kinetik currently has a consensus target price of $54.00, indicating a potential upside of 5.06%. Anadarko Petroleum has a consensus target price of $21.80, indicating a potential upside of 35.07%. Given Anadarko Petroleum’s higher possible upside, analysts clearly believe Anadarko Petroleum is more favorable than Kinetik.

Profitability

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

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

Summary

Kinetik beats Anadarko Petroleum on 12 of the 17 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 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.