Franks International (FI) versus Antero Midstream GP (AMGP) Critical Review

Franks International (NYSE: FI) and Antero Midstream GP (NYSE:AMGP) are both oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, earnings, risk, dividends and valuation.

Profitability

This table compares Franks International and Antero Midstream GP’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Franks International -26.21% -9.25% -7.80%
Antero Midstream GP 4.41% 17.95% 9.97%

Earnings & Valuation

This table compares Franks International and Antero Midstream GP’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Franks International $487.53 million 3.37 -$135.33 million ($0.53) -13.91
Antero Midstream GP $16.94 million 227.72 $9.71 million N/A N/A

Antero Midstream GP has lower revenue, but higher earnings than Franks International.

Insider and Institutional Ownership

31.5% of Franks International shares are owned by institutional investors. Comparatively, 64.7% of Antero Midstream GP shares are owned by institutional investors. 77.9% of Franks International shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

Franks International pays an annual dividend of $0.30 per share and has a dividend yield of 4.1%. Antero Midstream GP pays an annual dividend of $0.24 per share and has a dividend yield of 1.2%. Franks International pays out -56.6% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Franks International and Antero Midstream GP, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Franks International 3 9 1 0 1.85
Antero Midstream GP 0 2 13 1 2.94

Franks International currently has a consensus target price of $7.61, indicating a potential upside of 3.27%. Antero Midstream GP has a consensus target price of $26.38, indicating a potential upside of 27.29%. Given Antero Midstream GP’s stronger consensus rating and higher probable upside, analysts clearly believe Antero Midstream GP is more favorable than Franks International.

Summary

Antero Midstream GP beats Franks International on 10 of the 14 factors compared between the two stocks.

About Franks International

Frank’s International N.V. (FINV) is a provider of engineered tubular services, tubular fabrication and specialty well construction and well intervention solutions to the oil and gas industry. The Company operates through four business segments: International Services, U. S. Services, Tubular Sales and Blackhawk. As of December 31, 2016, the International Services segment provided tubular services in international offshore markets and in several onshore international regions in approximately 60 countries on six continents. The U.S. Services segment provides tubular services. The Blackhawk segment provides well construction and well intervention rental equipment, services and products, in addition to the cementing tool expertise, in the United States and Mexican Gulf of Mexico, onshore United States and other select international locations.

About Antero Midstream GP

Antero Midstream GP LP, formerly Antero Resources Midstream Management LLC, owns, operates and develops midstream energy infrastructure. The Company’s segments include gathering and processing and water handling and treatment. The gathering and processing segment consist of long-term, fee-based activities including low-pressure gathering, compression, high-pressure gathering, processing, fractionation, and condensate gathering. The Company’s water handling and treatment segment consists of long-term fee based activities including fresh water delivery used in completion activity, and water handling services. The Company’s assets are located both in the southwestern core of the Marcellus Shale in northwest West Virginia and in the core of the Utica Shale in southern Ohio.

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