Analyzing Kodiak Gas Services (KGS) & Its Competitors

Kodiak Gas Services (NYSE:KGS) is one of 177 publicly-traded companies in the “Energy Equipment & Services” industry, but how does it contrast to its competitors? We will compare Kodiak Gas Services to related companies based on the strength of its analyst recommendations, valuation, risk, profitability, dividends, institutional ownership and earnings.

Valuation and Earnings

This table compares Kodiak Gas Services and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Kodiak Gas Services	$1.39 billion	$80.52 million	53.52
Kodiak Gas Services Competitors	$3.27 billion	$29.73 million	19.21

Kodiak Gas Services’ competitors have higher revenue, but lower earnings than Kodiak Gas Services. Kodiak Gas Services is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Dividends

Kodiak Gas Services pays an annual dividend of $1.96 per share and has a dividend yield of 4.4%. Kodiak Gas Services pays out 233.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Energy Equipment & Services” companies pay a dividend yield of -2.0% and pay out -40.3% of their earnings in the form of a dividend. Kodiak Gas Services has raised its dividend for 2 consecutive years.

Profitability

This table compares Kodiak Gas Services and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kodiak Gas Services	5.77%	11.92%	3.70%
Kodiak Gas Services Competitors	-11.07%	7.51%	1.51%

Institutional & Insider Ownership

25.0% of Kodiak Gas Services shares are held by institutional investors. Comparatively, 49.0% of shares of all “Energy Equipment & Services” companies are held by institutional investors. 0.6% of Kodiak Gas Services shares are held by company insiders. Comparatively, 12.3% of shares of all “Energy Equipment & Services” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

Kodiak Gas Services has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500. Comparatively, Kodiak Gas Services’ competitors have a beta of 0.83, indicating that their average stock price is 17% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Kodiak Gas Services and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kodiak Gas Services	1	1	13	0	2.80
Kodiak Gas Services Competitors	1663	6811	8598	486	2.45

Kodiak Gas Services presently has a consensus price target of $79.18, indicating a potential upside of 76.13%. As a group, “Energy Equipment & Services” companies have a potential upside of 26.30%. Given Kodiak Gas Services’ stronger consensus rating and higher possible upside, equities analysts clearly believe Kodiak Gas Services is more favorable than its competitors.

Summary

Kodiak Gas Services beats its competitors on 10 of the 15 factors compared.

About Kodiak Gas Services

Kodiak Gas Services, Inc. operates contract compression infrastructure for customers in the oil and gas industry in the United States. It operates in two segments, Compression Operations and Other Services. The Compression Operations segment operates company-owned and customer-owned compression infrastructure to enable the production, gathering, and transportation of natural gas and oil. The Other Services segment provides a range of contract services, including station construction, maintenance and overhaul, and other ancillary time and material-based offerings. The company was formerly known as Frontier TopCo, Inc. Kodiak Gas Services, Inc. was founded in 2010 and is headquartered in The Woodlands, Texas.