Archrock Inc (AROC)vsBaker Hughes Co (BKR)
AROC
Archrock Inc
$27.54
+3.53%
ENERGY · Cap: $5.55B
BKR
Baker Hughes Co
$47.87
+3.61%
ENERGY · Cap: $54.85B
Smart Verdict
WallStSmart Research — data-driven comparison
Baker Hughes Co generates 1810% more annual revenue ($28.74B vs $1.50B). AROC leads profitability with a 21.8% profit margin vs 10.1%. AROC appears more attractively valued with a PEG of 1.18. AROC earns a higher WallStSmart Score of 66/100 (B-).
AROC
Strong Buy66
out of 100
Grade: B-
BKR
Buy61
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-65.7%
Fair Value
$16.05
Current Price
$27.54
$11.49 premium
Margin of Safety
-80.8%
Fair Value
$30.55
Current Price
$47.87
$17.32 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 35.9%
Every $100 of equity generates 21 in profit
Keeps 22 of every $100 in revenue as profit
Attractively priced relative to earnings
Large-cap with strong market position
Reasonable price relative to book value
Generating 1.0B in free cash flow
Areas to Watch
Elevated debt levels
Revenue declined 3.1%
Distress zone — elevated risk
Expensive relative to growth rate
Earnings declined 32.8%
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : AROC
The strongest argument for AROC centers on Operating Margin, Return on Equity, Profit Margin. Profitability is solid with margins at 21.8% and operating margin at 35.9%. PEG of 1.18 suggests the stock is reasonably priced for its growth.
Bull Case : BKR
The strongest argument for BKR centers on Market Cap, Price/Book, Free Cash Flow. Revenue growth of 14.5% demonstrates continued momentum.
Bear Case : AROC
The primary concerns for AROC are Debt/Equity, Revenue Growth, Altman Z-Score.
Bear Case : BKR
The primary concerns for BKR are PEG Ratio, EPS Growth, Altman Z-Score.
Key Dynamics to Monitor
AROC profiles as a declining stock while BKR is a value play — different risk/reward profiles.
BKR carries more volatility with a beta of 1.03 — expect wider price swings.
BKR is growing revenue faster at 14.5% — sustainability is the question.
BKR generates stronger free cash flow (1.0B), providing more financial flexibility.
Bottom Line
AROC scores higher overall (66/100 vs 61/100), backed by strong 21.8% margins. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Archrock Inc
ENERGY · OIL & GAS EQUIPMENT & SERVICES · USA
Archrock, Inc. is an energy infrastructure company in the United States. The company is headquartered in Houston, Texas.
Visit Website →Baker Hughes Co
ENERGY · OIL & GAS EQUIPMENT & SERVICES · USA
Baker Hughes Company is an American international industrial service company and one of the world's largest oil field services companies. The company provides the oil and gas industry with products and services for oil drilling, formation evaluation, completion, production and reservoir consulting. Baker Hughes is headquartered in Houston.
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