Reviewing Kodiak Gas Services (NYSE:KGS) & PHX Energy Services (OTCMKTS:PHXHF)
by Kim Johansen · The Markets DailyPHX Energy Services (OTCMKTS:PHXHF – Get Free Report) and Kodiak Gas Services (NYSE:KGS – Get Free Report) are both energy companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, profitability, earnings, dividends, valuation, risk and analyst recommendations.
Valuation and Earnings
This table compares PHX Energy Services and Kodiak Gas Services”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| PHX Energy Services | N/A | N/A | N/A | $1.32 | 6.20 |
| Kodiak Gas Services | $1.32 billion | 3.89 | $80.52 million | $0.74 | 78.38 |
Kodiak Gas Services has higher revenue and earnings than PHX Energy Services. PHX Energy Services is trading at a lower price-to-earnings ratio than Kodiak Gas Services, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
38.3% of PHX Energy Services shares are held by institutional investors. Comparatively, 25.0% of Kodiak Gas Services shares are held by institutional investors. 0.6% of Kodiak Gas Services shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares PHX Energy Services and Kodiak Gas Services’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| PHX Energy Services | N/A | N/A | N/A |
| Kodiak Gas Services | 5.13% | 13.12% | 3.72% |
Analyst Ratings
This is a summary of recent ratings and price targets for PHX Energy Services and Kodiak Gas Services, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PHX Energy Services | 0 | 0 | 1 | 0 | 3.00 |
| Kodiak Gas Services | 0 | 2 | 10 | 0 | 2.83 |
Kodiak Gas Services has a consensus target price of $79.33, suggesting a potential upside of 36.78%. Given Kodiak Gas Services’ higher possible upside, analysts clearly believe Kodiak Gas Services is more favorable than PHX Energy Services.
Dividends
PHX Energy Services pays an annual dividend of $0.83 per share and has a dividend yield of 10.1%. Kodiak Gas Services pays an annual dividend of $1.96 per share and has a dividend yield of 3.4%. PHX Energy Services pays out 62.9% of its earnings in the form of a dividend. Kodiak Gas Services pays out 264.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kodiak Gas Services has raised its dividend for 2 consecutive years. PHX Energy Services is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Kodiak Gas Services beats PHX Energy Services on 9 of the 14 factors compared between the two stocks.
About PHX Energy Services
PHX Energy Services Corp. provides horizontal and directional drilling services, rents performance drilling motors, and sells motor equipment and parts to oil and natural gas exploration and development companies in Canada, the United States, Albania, the Middle East regions, and internationally. It offers Atlas motors; Velocity Real-Time Systems that provide downhole guidance systems; Echo system; PowerDrive Orbit RSS, a rotary steerable system; performance drilling motors; P-360 Positive Pulse MWD System, a measurement while drilling (MWD) tool; and E-360 EM MWD System, a MWD tool that transmits electric signals through geological formations. The company also provides 360 CV MWD System, a clear vision tool, which surveys inclination and gamma in real-time closer to the bit; 360 RWD System, a resistivity while drilling sub; and North Seeking Gyro that offers real-time QA/QC checks downhole. In addition, it offers directional drilling and motor rentals, survey management, and Gyro surveying services. The company was formerly known as Phoenix Technology Income Fund and changed its name to PHX Energy Services Corp. PHX Energy Services Corp. was founded in 1995 and is headquartered in Calgary, Canada.
About Kodiak Gas Services
Kodiak Gas Services, Inc. operates contract compression infrastructure for customers in the oil and gas industry in the United States. It operates in two segments, Compression Operations and Other Services. The Compression Operations segment operates company-owned and customer-owned compression infrastructure to enable the production, gathering, and transportation of natural gas and oil. The Other Services segment provides a range of contract services, including station construction, maintenance and overhaul, and other ancillary time and material-based offerings. The company was formerly known as Frontier TopCo, Inc. Kodiak Gas Services, Inc. was founded in 2010 and is headquartered in The Woodlands, Texas.