Anadarko Petroleum (NASDAQ:APC – Get Free Report) and Kinetik (NYSE:KNTK – Get Free Report) are both energy companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.
Insider & Institutional Ownership
21.1% of Kinetik shares are owned by institutional investors. 0.5% of Anadarko Petroleum shares are owned by company insiders. Comparatively, 3.6% of Kinetik shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of current ratings and target prices for Anadarko Petroleum and Kinetik, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Anadarko Petroleum | 1 | 2 | 3 | 1 | 2.57 |
| Kinetik | 0 | 6 | 11 | 2 | 2.79 |
Valuation & Earnings
This table compares Anadarko Petroleum and Kinetik”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Anadarko Petroleum | $5.58 billion | 0.04 | $32.73 million | $0.69 | 23.39 |
| Kinetik | $1.76 billion | 4.73 | $525.93 million | $2.76 | 18.62 |
Kinetik has lower revenue, but higher earnings 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.
Dividends
Anadarko Petroleum pays an annual dividend of $2.00 per share and has a dividend yield of 12.4%. Kinetik pays an annual dividend of $3.24 per share and has a dividend yield of 6.3%. 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 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. Kinetik has raised its dividend for 1 consecutive years.
Profitability
This table compares Anadarko Petroleum and Kinetik’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Anadarko Petroleum | N/A | N/A | N/A |
| Kinetik | 26.19% | -38.96% | 7.07% |
Summary
Kinetik beats Anadarko Petroleum on 12 of the 17 factors compared between the two stocks.
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.
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.
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