Head-To-Head Contrast: Drilling Tools International (NASDAQ:DTI) & Kinetik (NYSE:KNTK)

Kinetik (NYSE:KNTK) and Drilling Tools International (NASDAQ:DTI) are both energy companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, analyst recommendations, earnings and valuation.

Insider and Institutional Ownership

21.1% of Kinetik shares are owned by institutional investors. Comparatively, 2.8% of Drilling Tools International shares are owned by institutional investors. 3.8% of Kinetik shares are owned by insiders. Comparatively, 56.5% of Drilling Tools International shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Kinetik has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500. Comparatively, Drilling Tools International has a beta of -0.35, indicating that its share price is 135% less volatile than the S&P 500.

Earnings and Valuation

This table compares Kinetik and Drilling Tools International”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kinetik	$1.48 billion	4.41	$244.23 million	$0.42	96.45
Drilling Tools International	$154.45 million	0.80	$3.01 million	($0.19)	-18.37

Kinetik has higher revenue and earnings than Drilling Tools International. Drilling Tools International is trading at a lower price-to-earnings ratio than Kinetik, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Kinetik and Drilling Tools International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kinetik	6.70%	-5.74%	1.81%
Drilling Tools International	-3.93%	1.12%	0.60%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Kinetik and Drilling Tools International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kinetik	1	6	6	0	2.38
Drilling Tools International	1	1	0	0	1.50

Kinetik currently has a consensus target price of $46.00, indicating a potential upside of 13.55%. Given Kinetik’s stronger consensus rating and higher possible upside, equities analysts clearly believe Kinetik is more favorable than Drilling Tools International.

Summary

Kinetik beats Drilling Tools International on 12 of the 14 factors compared between the two stocks.

About Kinetik

Kinetik Holdings Inc. operates as a midstream company in the Texas Delaware Basin. It provides gathering, transportation, compression, processing, and treating services for companies that produce natural gas, natural gas liquids, crude oil, and water. The company is headquartered in Midland, Texas.

About Drilling Tools International

Drilling Tools International Corporation provides oilfield equipment and services to oil and natural gas sectors in North America, Europe, and the Middle East. It offers downhole tool rentals, machining, and inspection services to support the global drilling and wellbore construction industry. The company also provides products are bottom hole assembly components, such as stabilizers, subs, non-magnetic and steel drill collars, hole openers, and roller reamers, as well as drill pipe and drill pipe accessories; ancillary equipment and handling tools to support its rental platform, including float valves, ring gauges, tool baskets, lift bail, lift subs, mud magnets, elevators, bracket and bail assemblies, slips, tongs, stabbing guides and safety clamps; and blowout preventers, and pressure control accessory equipment. In addition, it offers tool rental services, which consists of rental, inspection, machining, and repair services; rents downhole drilling tools used in horizontal and directional drilling of oil and natural gas; rents kellys, pip joints, work strings; maintains a fleet of rental equipment consisting of drill collars, stabilizers, crossover subs, wellbore conditioning tools, drill pipe, hevi-wate drill pipe, and tubing; rents surface control equipment, such as blowout preventers and handling tools; and provides downhole products for producing wells. Drilling Tools International Corporation is headquartered in Houston, Texas.