Head-To-Head Comparison: Kinetik (NYSE:KNTK) and TechnipFMC (NYSE:FTI)

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

Risk & Volatility

Kinetik has a beta of 3.05, suggesting that its stock price is 205% more volatile than the S&P 500. Comparatively, TechnipFMC has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500.

Valuation and Earnings

This table compares Kinetik and TechnipFMC”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kinetik	$1.48 billion	4.67	$244.23 million	$0.95	46.11
TechnipFMC	$9.08 billion	1.60	$842.90 million	$1.90	18.25

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kinetik	10.74%	-8.05%	2.47%
TechnipFMC	8.93%	27.01%	8.75%

Dividends

Kinetik pays an annual dividend of $3.12 per share and has a dividend yield of 7.1%. TechnipFMC pays an annual dividend of $0.20 per share and has a dividend yield of 0.6%. Kinetik pays out 328.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. TechnipFMC pays out 10.5% of its earnings in the form of a dividend. Kinetik has increased its dividend for 1 consecutive years and TechnipFMC has increased its dividend for 1 consecutive years.

Insider & Institutional Ownership

21.1% of Kinetik shares are held by institutional investors. Comparatively, 96.6% of TechnipFMC shares are held by institutional investors. 3.8% of Kinetik shares are held by company insiders. Comparatively, 1.8% of TechnipFMC shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Kinetik and TechnipFMC, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kinetik	0	3	6	0	2.67
TechnipFMC	0	2	11	1	2.93

Kinetik currently has a consensus price target of $56.56, indicating a potential upside of 29.12%. TechnipFMC has a consensus price target of $36.85, indicating a potential upside of 6.25%. Given Kinetik’s higher probable upside, equities analysts plainly believe Kinetik is more favorable than TechnipFMC.

Summary

TechnipFMC beats Kinetik on 10 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 TechnipFMC

TechnipFMC plc engages in the energy projects, technologies, and systems and services businesses in Europe, Central Asia, North America, Latin America, the Asia Pacific, Africa, the Middle East, and internationally. It operates through two segments: Subsea and Surface Technologies. The Subsea segment engages in the design, engineering, procurement, manufacturing, fabrication, installation, and life of field services for subsea systems, subsea field infrastructure, and subsea pipe systems used in oil and gas production and transportation. It provides subsea production and processing system; flexible pipe; subsea umbilicals, risers, and flowlines; vessels; robotics; well and asset services; and Subsea Studio for optimizing the development, execution, and operation of current and future subsea fields. The Surface Technologies segment designs, manufactures, and services products and systems used in land and shallow water exploration and production of crude oil and natural gas. This segment offers drilling; surface wellheads and production trees systems; iComplete, a pressure control system; fracturing tree and manifold systems; flexible pipes; safety and integrity systems, multiphase meter modules, in-line separation and processing systems, and standard pumps; well control and integrity systems; separation and processing systems; skid systems; and flow measurement and automation solutions. It also offers planning, testing and installation, commissioning, operations, replacement and upgrade, maintenance, storage, preservation, intervention, integrity, decommissioning, and abandonment; and supplies flowline products and services. TechnipFMC plc was founded in 1884 and is headquartered in Houston, Texas.