Financial Review: Wavefront Technology Solutions (OTCMKTS:WFTSF) versus Archrock (NYSE:AROC)

Wavefront Technology Solutions (OTCMKTS:WFTSF) and Archrock (NYSE:AROC) are both energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, profitability, risk and analyst recommendations.

Institutional & Insider Ownership

0.8% of Wavefront Technology Solutions shares are owned by institutional investors. Comparatively, 95.4% of Archrock shares are owned by institutional investors. 2.9% of Archrock shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Wavefront Technology Solutions and Archrock’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wavefront Technology Solutions	N/A	N/A	N/A	($0.06)	N/A
Archrock	$990.34 million	3.14	$105.00 million	$0.67	29.70

Archrock has higher revenue and earnings than Wavefront Technology Solutions. Wavefront Technology Solutions is trading at a lower price-to-earnings ratio than Archrock, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Wavefront Technology Solutions and Archrock, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wavefront Technology Solutions	0	0	0	0	N/A
Archrock	0	0	3	0	3.00

Archrock has a consensus price target of $17.67, indicating a potential downside of 11.22%.

Profitability

This table compares Wavefront Technology Solutions and Archrock’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Wavefront Technology Solutions	N/A	N/A	N/A
Archrock	10.60%	12.63%	4.09%

Summary

Archrock beats Wavefront Technology Solutions on 9 of the 9 factors compared between the two stocks.

About Wavefront Technology Solutions

Wavefront Technology Solutions Inc. develops fluid injection technologies for oil and gas well stimulation, and improved/enhanced oil recovery in Canada. The company offers Powerwave process, an injection technology that improves the flow of fluids in geological materials, including sedimentary soils and fractured rock; and Primawave process, a method for aiding in-ground environmental remediation clean-up in contaminated sites. Wavefront Technology Solutions is headquartered in Edmonton, Canada.

About Archrock

Archrock, Inc., together with its subsidiaries, operates as an energy infrastructure company in the United States. The company operates in two segments, Contract Operations and Aftermarket Services. It engages in the designing, sourcing, owning, installing, operating, servicing, repairing, and maintaining of its owned fleet of natural gas compression equipment to provide natural gas compression services. The company also sells over-the-counter parts and components; and provides operations, major and routine maintenance, overhaul, and reconfiguration services to customers who own compression equipment. It serves integrated and independent oil and natural gas processors, gatherers, and transporters. The company was formerly known as Exterran Holdings, Inc. and changed its name to Archrock, Inc. in November 2015. Archrock, Inc. was founded in 1990 and is headquartered in Houston, Texas.