NGS vs USAC vs AROC vs HESM

For growth investors, Archrock, Inc.

(AROC) is the stronger pick with 28. 7% revenue growth year-over-year, versus 5. 0% for USA Compression Partners, LP (USAC). Hess Midstream LP (HESM) offers the better valuation at 13. 5x trailing P/E (13. 3x forward), making it the more compelling value choice. Analysts rate Natural Gas Services Group, Inc. (NGS) a "Buy" — based on 16 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.

On trailing P/E, Hess Midstream LP (HESM) is the cheapest at 13.

5x versus USA Compression Partners, LP at 32. 5x. On forward P/E, Hess Midstream LP is actually cheaper at 13. 3x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Natural Gas Services Group, Inc. wins at 0. 32x versus Hess Midstream LP's 0. 79x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Archrock, Inc.

(AROC) delivered a total return of +327. 1%, compared to +123. 1% for Hess Midstream LP (HESM). Over 10 years, the gap is even starker: AROC returned +577. 9% versus NGS's +81. 5%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Hess Midstream LP (HESM) is the lower-risk stock at 0.

27β versus Natural Gas Services Group, Inc. 's 0. 91β — meaning NGS is approximately 242% more volatile than HESM relative to the S&P 500. On balance sheet safety, Natural Gas Services Group, Inc. (NGS) carries a lower debt/equity ratio of 84% versus 9% for Hess Midstream LP — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Archrock, Inc.

(AROC) is pulling ahead at 28. 7% versus 5. 0% for USA Compression Partners, LP (USAC). On earnings-per-share growth, the picture is similar: Archrock, Inc. grew EPS 75. 2% year-over-year, compared to 14. 6% for Natural Gas Services Group, Inc.. Over a 3-year CAGR, NGS leads at 26. 6% 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.

Hess Midstream LP (HESM) is the more profitable company, earning 21.

8% net margin versus 11. 2% for USA Compression Partners, LP — meaning it keeps 21. 8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: HESM leads at 62. 2% versus 21. 6% for NGS. At the gross margin level — before operating expenses — HESM leads at 63. 9%, 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.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Natural Gas Services Group, Inc. (NGS) is the more undervalued stock at a PEG of 0. 32x versus Hess Midstream LP's 0. 79x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Hess Midstream LP (HESM) trades at 13. 3x forward P/E versus 19. 8x for USA Compression Partners, LP — 6. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for NGS: 6. 1% to $42. 00.

All stocks in this comparison pay dividends.

USA Compression Partners, LP (USAC) offers the highest yield at 7. 6%, versus 0. 5% for Natural Gas Services Group, Inc. (NGS).

For long-horizon retirement investors, Hess Midstream LP (HESM) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

27), 7. 4% yield, +121. 2% 10Y return). Both have compounded well over 10 years (HESM: +121. 2%, NGS: +81. 5%), 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.

Both stocks operate in the Energy sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: NGS is a small-cap quality compounder stock; USAC is a small-cap income-oriented stock; AROC is a small-cap high-growth stock; HESM is a small-cap deep-value 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.