Archrock vs Kodiak Gas Services
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KIRAβs take AI analyst
I put Archrock and Kodiak Gas Services side by side, using each oneβs latest annual report. Here is what stands out:
- Archrock is the larger business, with $1.5B of revenue in fiscal 2025 against $1.3B for Kodiak Gas Services.
- Archrock grew revenue faster (28.7%, against 12.8%).
- Kodiak Gas Services turned more of its sales into free cash flow (21.7% FCF margin, against 8.0%).
- Archrock earned a higher return on the capital invested in it (12.1%, against 6.3%).
- Investors pay more for each dollar of Kodiak Gas Servicesβs earnings: a P/E of 52.8x against 15.7x for Archrock.
Who comes out ahead
Of the 8 measures where higher (or lower) is clearly better, how many each company leads.
Archrock
AROC
6/8
Revenue growthNet marginReturn on capitalReturn on equityPiotroski F-scoreNet debt / EBITDA
Kodiak Gas Services
KGS
2/8
FCF marginShare count change
Side by side
Best in the row
| Latest fiscal year | AROC FY25 | KGS FY25 |
|---|---|---|
| Size | ||
| Market cap | $5.1B | $4.3B |
| Revenue | $1.5B | $1.3B |
| Free cash flow | $120M | $284M |
| Net income | $322M | $80.5M |
| Growth | ||
| Revenue growth | 28.7% | 12.8% |
| 5-year growth | 11.2% | β |
| Share count change | 7.6% | 3.9% |
| Profitability | ||
| Gross margin | 48.6% | β |
| Operating margin | β | 26.0% |
| Net margin | 21.6% | 6.2% |
| FCF margin | 8.0% | 21.7% |
| Return on capital | 12.1% | 6.3% |
| Return on equity | 22.9% | 6.2% |
| Balance sheet | ||
| Net debt | $2.4B | $2.6B |
| Net debt / EBITDA | 2.9x | 4.2x |
| Dividends and buybacks | $212M | $264M |
| Valuation & quality | ||
| P/E | 15.7x | 52.8x |
| Piotroski F-score | 7 | 5 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.