Oil & Gas Equipment & Services
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AROC vs WTTR
Revenue, margins, valuation, and 5-year total return — side by side.
Regulated Water
AROC vs WTTR — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Oil & Gas Equipment & Services | Regulated Water |
| Market Cap | $6.68B | $1.89B |
| Revenue (TTM) | $1.52B | $1.40B |
| Net Income (TTM) | $325M | $22M |
| Gross Margin | 45.5% | 18.2% |
| Operating Margin | 25.2% | 2.3% |
| Forward P/E | 19.3x | 41.7x |
| Total Debt | $2.42B | $374M |
| Cash & Equiv. | $2M | $18M |
AROC vs WTTR — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Archrock, Inc. (AROC) | 100 | 600.2 | +500.2% |
| Select Water Soluti… (WTTR) | 100 | 283.2 | +183.2% |
Price return only. Dividends and distributions are not included.
Quick Verdict: AROC vs WTTR
Each card shows where this stock fits in a portfolio — not just who wins on paper.
AROC carries the broadest edge in this set and is the clearest fit for income & stability and growth exposure.
- Dividend streak 4 yrs, beta 0.91, yield 2.1%
- Rev growth 28.7%, EPS growth 75.2%, 3Y rev CAGR 20.8%
- 5.8% 10Y total return vs WTTR's 26.6%
WTTR is the clearest fit if your priority is momentum.
- +134.2% vs AROC's +62.5%
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 28.7% revenue growth vs WTTR's -3.1% | |
| Value | Lower P/E (19.3x vs 41.7x) | |
| Quality / Margins | 21.4% margin vs WTTR's 1.5% | |
| Stability / Safety | Beta 0.91 vs WTTR's 1.09 | |
| Dividends | 2.1% yield, 4-year raise streak, vs WTTR's 1.9% | |
| Momentum (1Y) | +134.2% vs AROC's +62.5% | |
| Efficiency (ROA) | 7.4% ROA vs WTTR's 1.3%, ROIC 11.6% vs 2.3% |
AROC vs WTTR — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
AROC vs WTTR — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
AROC leads this category, winning 6 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
AROC and WTTR operate at a comparable scale, with $1.5B and $1.4B in trailing revenue. AROC is the more profitable business, keeping 21.4% of every revenue dollar as net income compared to WTTR's 1.5%. On growth, AROC holds the edge at +7.7% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $1.5B | $1.4B |
| EBITDAEarnings before interest/tax | $789M | $217M |
| Net IncomeAfter-tax profit | $325M | $22M |
| Free Cash FlowCash after capex | $358M | -$95M |
| Gross MarginGross profit ÷ Revenue | +45.5% | +18.2% |
| Operating MarginEBIT ÷ Revenue | +25.2% | +2.3% |
| Net MarginNet income ÷ Revenue | +21.4% | +1.5% |
| FCF MarginFCF ÷ Revenue | +23.6% | -6.8% |
| Rev. Growth (YoY)Latest quarter vs prior year | +7.7% | -2.3% |
| EPS Growth (YoY)Latest quarter vs prior year | +2.5% | -4.4% |
Valuation Metrics
WTTR leads this category, winning 3 of 5 comparable metrics.
Valuation Metrics
At 20.7x trailing earnings, AROC trades at a 75% valuation discount to WTTR's 84.1x P/E. On an enterprise value basis, WTTR's 10.7x EV/EBITDA is more attractive than AROC's 10.9x.
| Metric | ||
|---|---|---|
| Market CapShares × price | $6.7B | $1.9B |
| Enterprise ValueMkt cap + debt − cash | $9.1B | $2.2B |
| Trailing P/EPrice ÷ TTM EPS | 20.71x | 84.10x |
| Forward P/EPrice ÷ next-FY EPS est. | 19.26x | 41.66x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 10.87x | 10.70x |
| Price / SalesMarket cap ÷ Revenue | 4.48x | 1.34x |
| Price / BookPrice ÷ Book value/share | 4.47x | 1.88x |
| Price / FCFMarket cap ÷ FCF | 55.82x | — |
Profitability & Efficiency
AROC leads this category, winning 6 of 9 comparable metrics.
Profitability & Efficiency
AROC delivers a 22.3% return on equity — every $100 of shareholder capital generates $22 in annual profit, vs $2 for WTTR. WTTR carries lower financial leverage with a 0.40x debt-to-equity ratio, signaling a more conservative balance sheet compared to AROC's 1.62x. On the Piotroski fundamental quality scale (0–9), AROC scores 7/9 vs WTTR's 3/9, reflecting strong financial health.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +22.3% | +2.2% |
| ROA (TTM)Return on assets | +7.4% | +1.3% |
| ROICReturn on invested capital | +11.6% | +2.3% |
| ROCEReturn on capital employed | +14.8% | +2.9% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 3 |
| Debt / EquityFinancial leverage | 1.62x | 0.40x |
| Net DebtTotal debt minus cash | $2.4B | $356M |
| Cash & Equiv.Liquid assets | $2M | $18M |
| Total DebtShort + long-term debt | $2.4B | $374M |
| Interest CoverageEBIT ÷ Interest expense | 2.81x | 1.54x |
Total Returns (Dividends Reinvested)
AROC leads this category, winning 4 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in AROC five years ago would be worth $42,706 today (with dividends reinvested), compared to $25,837 for WTTR. Over the past 12 months, WTTR leads with a +134.2% total return vs AROC's +62.5%. The 3-year compound annual growth rate (CAGR) favors AROC at 60.3% vs WTTR's 33.1% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | +43.9% | +52.9% |
| 1-Year ReturnPast 12 months | +62.5% | +134.2% |
| 3-Year ReturnCumulative with dividends | +312.1% | +135.9% |
| 5-Year ReturnCumulative with dividends | +327.1% | +158.4% |
| 10-Year ReturnCumulative with dividends | +577.9% | +26.6% |
| CAGR (3Y)Annualised 3-year return | +60.3% | +33.1% |
Risk & Volatility
AROC leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
AROC is the less volatile stock with a 0.91 beta — it tends to amplify market swings less than WTTR's 1.09 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.91x | 1.09x |
| 52-Week HighHighest price in past year | $40.12 | $17.95 |
| 52-Week LowLowest price in past year | $21.17 | $7.20 |
| % of 52W HighCurrent price vs 52-week peak | +95.0% | +93.7% |
| RSI (14)Momentum oscillator 0–100 | 66.8 | 69.4 |
| Avg Volume (50D)Average daily shares traded | 1.6M | 1.7M |
Analyst Outlook
AROC leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Wall Street rates AROC as "Buy" and WTTR as "Buy". Consensus price targets imply 5.0% upside for AROC (target: $40) vs -4.9% for WTTR (target: $16). For income investors, AROC offers the higher dividend yield at 2.13% vs WTTR's 1.93%.
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $40.00 | $16.00 |
| # AnalystsCovering analysts | 18 | 14 |
| Dividend YieldAnnual dividend ÷ price | +2.1% | +1.9% |
| Dividend StreakConsecutive years of raises | 4 | 3 |
| Dividend / ShareAnnual DPS | $0.81 | $0.32 |
| Buyback YieldShare repurchases ÷ mkt cap | +1.1% | +0.4% |
AROC leads in 5 of 6 categories (Income & Cash Flow, Profitability & Efficiency). WTTR leads in 1 (Valuation Metrics).
AROC vs WTTR: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is AROC or WTTR a better buy right now?
For growth investors, Archrock, Inc.
(AROC) is the stronger pick with 28. 7% revenue growth year-over-year, versus -3. 1% for Select Water Solutions, Inc. (WTTR). Archrock, Inc. (AROC) offers the better valuation at 20. 7x trailing P/E (19. 3x forward), making it the more compelling value choice. Analysts rate Archrock, Inc. (AROC) a "Buy" — based on 18 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — AROC or WTTR?
On trailing P/E, Archrock, Inc.
(AROC) is the cheapest at 20. 7x versus Select Water Solutions, Inc. at 84. 1x. On forward P/E, Archrock, Inc. is actually cheaper at 19. 3x.
03Which is the better long-term investment — AROC or WTTR?
Over the past 5 years, Archrock, Inc.
(AROC) delivered a total return of +327. 1%, compared to +158. 4% for Select Water Solutions, Inc. (WTTR). Over 10 years, the gap is even starker: AROC returned +577. 9% versus WTTR's +26. 6%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — AROC or WTTR?
By beta (market sensitivity over 5 years), Archrock, Inc.
(AROC) is the lower-risk stock at 0. 91β versus Select Water Solutions, Inc. 's 1. 09β — meaning WTTR is approximately 20% more volatile than AROC relative to the S&P 500. On balance sheet safety, Select Water Solutions, Inc. (WTTR) carries a lower debt/equity ratio of 40% versus 162% for Archrock, Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — AROC or WTTR?
By revenue growth (latest reported year), Archrock, Inc.
(AROC) is pulling ahead at 28. 7% versus -3. 1% for Select Water Solutions, Inc. (WTTR). On earnings-per-share growth, the picture is similar: Archrock, Inc. grew EPS 75. 2% year-over-year, compared to -33. 3% for Select Water Solutions, Inc.. Over a 3-year CAGR, AROC leads at 20. 8% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — AROC or WTTR?
Archrock, Inc.
(AROC) is the more profitable company, earning 21. 6% net margin versus 1. 5% for Select Water Solutions, Inc. — meaning it keeps 21. 6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: AROC leads at 38. 7% versus 2. 5% for WTTR. At the gross margin level — before operating expenses — AROC leads at 48. 6%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is AROC or WTTR more undervalued right now?
On forward earnings alone, Archrock, Inc.
(AROC) trades at 19. 3x forward P/E versus 41. 7x for Select Water Solutions, Inc. — 22. 4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for AROC: 5. 0% to $40. 00.
08Which pays a better dividend — AROC or WTTR?
All stocks in this comparison pay dividends.
Archrock, Inc. (AROC) offers the highest yield at 2. 1%, versus 1. 9% for Select Water Solutions, Inc. (WTTR).
09Is AROC or WTTR better for a retirement portfolio?
For long-horizon retirement investors, Archrock, Inc.
(AROC) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 91), 2. 1% yield, +577. 9% 10Y return). Both have compounded well over 10 years (AROC: +577. 9%, WTTR: +26. 6%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between AROC and WTTR?
These companies operate in different sectors (AROC (Energy) and WTTR (Utilities)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.
In terms of investment character: AROC is a small-cap high-growth stock; WTTR is a small-cap quality compounder stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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