WallStSmart

Archrock Inc (AROC)vsSolaris Energy Infrastructure, Inc. (SEI)

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Smart Verdict

WallStSmart Research — data-driven comparison

Archrock Inc generates 97% more annual revenue ($1.50B vs $762.18M). AROC leads profitability with a 21.8% profit margin vs 7.2%. SEI appears more attractively valued with a PEG of 0.94. AROC earns a higher WallStSmart Score of 66/100 (B-).

AROC

Strong Buy

66

out of 100

Grade: B-

Growth: 6.0Profit: 8.5Value: 5.3Quality: 4.0
Piotroski: 4/9Altman Z: 0.41

SEI

Buy

55

out of 100

Grade: C

Growth: 7.3Profit: 6.0Value: 5.3Quality: 4.5
Piotroski: 3/9Altman Z: 1.02
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AROCSignificantly Overvalued (-65.7%)

Margin of Safety

-65.7%

Fair Value

$16.05

Current Price

$27.54

$11.49 premium

UndervaluedFair: $16.05Overvalued
SEIUndervalued (+8.3%)

Margin of Safety

+8.3%

Fair Value

$55.14

Current Price

$57.77

$2.63 discount

UndervaluedFair: $55.14Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AROC4 strengths · Avg: 9.0/10
Operating MarginProfitability
35.9%10/10

Strong operational efficiency at 35.9%

Return on EquityProfitability
21.4%9/10

Every $100 of equity generates 21 in profit

Profit MarginProfitability
21.8%9/10

Keeps 22 of every $100 in revenue as profit

P/E RatioValuation
17.0x8/10

Attractively priced relative to earnings

SEI3 strengths · Avg: 8.7/10
Revenue GrowthGrowth
46.9%10/10

Revenue surging 46.9% year-over-year

PEG RatioValuation
0.948/10

Growing faster than its price suggests

Operating MarginProfitability
26.5%8/10

Strong operational efficiency at 26.5%

Areas to Watch

AROC3 concerns · Avg: 2.3/10
Debt/EquityHealth
1.473/10

Elevated debt levels

Revenue GrowthGrowth
-3.1%2/10

Revenue declined 3.1%

Altman Z-ScoreHealth
0.412/10

Distress zone — elevated risk

SEI4 concerns · Avg: 2.8/10
Return on EquityProfitability
5.9%3/10

ROE of 5.9% — below average capital efficiency

Profit MarginProfitability
7.2%3/10

7.2% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
82.1x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull 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 : SEI

The strongest argument for SEI centers on Revenue Growth, PEG Ratio, Operating Margin. Revenue growth of 46.9% demonstrates continued momentum. PEG of 0.94 suggests the stock is reasonably priced for its growth.

Bear Case : AROC

The primary concerns for AROC are Debt/Equity, Revenue Growth, Altman Z-Score.

Bear Case : SEI

The primary concerns for SEI are Return on Equity, Profit Margin, Piotroski F-Score. A P/E of 82.1x leaves little room for execution misses.

Key Dynamics to Monitor

AROC profiles as a declining stock while SEI is a hypergrowth play — different risk/reward profiles.

SEI carries more volatility with a beta of 1.28 — expect wider price swings.

SEI is growing revenue faster at 46.9% — sustainability is the question.

Monitor OIL & GAS EQUIPMENT & SERVICES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

AROC scores higher overall (66/100 vs 55/100), 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.

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Solaris Energy Infrastructure, Inc.

ENERGY · OIL & GAS EQUIPMENT & SERVICES · USA

Solaris Oilfield Infrastructure, Inc. designs and manufactures specialized equipment for oil and natural gas operators in the United States. The company is headquartered in Houston, Texas.

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