Head-To-Head Contrast: Petrofac (OTCMKTS:POFCY) versus Kinetik (NYSE:KNTK)

Kinetik (NYSE:KNTK) and Petrofac (OTCMKTS:POFCY) are both energy companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, earnings and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kinetik	8.21%	-6.16%	1.95%
Petrofac	N/A	N/A	N/A

Valuation and Earnings

This table compares Kinetik and Petrofac”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kinetik	$1.48 billion	4.72	$244.23 million	$0.74	58.43
Petrofac	$2.50 billion	0.05	-$505.00 million	N/A	N/A

Kinetik has higher earnings, but lower revenue than Petrofac.

Volatility and Risk

Kinetik has a beta of 3.16, meaning that its share price is 216% more volatile than the S&P 500. Comparatively, Petrofac has a beta of 2.91, meaning that its share price is 191% more volatile than the S&P 500.

Institutional and Insider Ownership

21.1% of Kinetik shares are held by institutional investors. 3.8% of Kinetik shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for Kinetik and Petrofac, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kinetik	0	4	6	0	2.60
Petrofac	0	0	0	0	0.00

Kinetik presently has a consensus price target of $54.67, indicating a potential upside of 26.43%. Given Kinetik’s stronger consensus rating and higher possible upside, research analysts clearly believe Kinetik is more favorable than Petrofac.

Summary

Kinetik beats Petrofac on 10 of the 12 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 Petrofac

Petrofac Limited designs, builds, manages, and maintains infrastructure for the energy industries in the United Kingdom, Algeria, Thailand, Oman, Kuwait, Iraq, the United Arab Emirates, the Netherlands, and internationally. It operates through three segments: Engineering & Construction (E&C); Asset Solutions; and Integrated Energy Services (IES). The E&C segment provides onshore and offshore engineering, procurement, construction, installation, and commissioning services. The Asset Solutions segment offers concept, feasibility, and front-end engineering design services, as well as manages and maintains onshore and offshore operations. The IES segment focuses on delivering value from the existing asset portfolio. The company was founded in 1981 and is based in St Helier, Jersey.