Archrock vs Baker Hughes: Which Is the Stronger Buy Today?

BKR: Baker Hughes logo
BKR
Baker Hughes

Even as Baker Hughes fell -5.5% during the past Day, its peer Archrock may be a better choice. Consistently evaluating alternatives is core to sound investment approach. Archrock (AROC) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Baker Hughes (BKR) stock, suggesting you may be better off investing in AROC

  • AROC’s quarterly revenue growth was 30.9%, vs. BKR’s 1.5%.
  • In addition, its Last 12 Months revenue growth came in at 31.9%, ahead of BKR’s 1.5%.
  • AROC leads on profitability over both periods – LTM margin of 36.3% and 3-year average of 30.1%.

A single stock can be risky, but there is a huge value to a broader, diversified approach we take with the Trefis High Quality Portfolio. We go beyond just equities. Is a portfolio of 10% commodities, 10% gold, and 2% crypto in addition to equities and bonds likely to return more during the next 1-3 years, and protect you better if markets crash 20%? We have crunched the numbers.

BKR provides technologies and services across energy and industrial sectors via Oilfield Services, Equipment, Turbomachinery, and Digital Solutions for exploration, drilling, production, and power-generation applications. AROC operates and services a fleet of natural gas compression equipment, providing design, installation, maintenance, repairs, parts sales, and aftermarket services across the United States.

Valuation & Performance Overview

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  BKR AROC Preferred
     
Valuation      
P/EBIT Ratio 12.8 8.5 AROC
     
Revenue Growth      
Last Quarter 1.5% 30.9% AROC
Last 12 Months 1.5% 31.9% AROC
Last 3 Year Average 10.4% 20.8% AROC
     
Operating Margins      
Last 12 Months 12.8% 36.3% AROC
Last 3 Year Average 11.6% 30.1% AROC
     
Momentum      
Last 3 Year Return 69.5% 253.4% AROC

Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: BKR Revenue Comparison | AROC Revenue Comparison
See more margin details: BKR Operating Income Comparison | AROC Operating Income Comparison
 
But do these numbers tell the full story? Read Buy or Sell AROC Stock to see if Archrock’s edge holds up under the hood or if Baker Hughes still has cards to play (see Buy or Sell BKR Stock).

Historical Market Performance

  2020 2021 2022 2023 2024 2025 Total [1] Avg Best
Returns
BKR Return -15% 19% 26% 19% 23% 14% 123%  
AROC Return -6% -8% 29% 81% 68% 5% 254% <===
S&P 500 Return 16% 27% -19% 24% 23% 15% 112%  
Monthly Win Rates [3]
BKR Win Rate 50% 50% 58% 50% 67% 60%   56%  
AROC Win Rate 67% 42% 67% 75% 58% 40%   58%  
S&P 500 Win Rate 58% 75% 42% 67% 75% 70%   64% <===
Max Drawdowns [4]
BKR Max Drawdown -63% -6% -13% -9% -17% -14%   -20%  
AROC Max Drawdown -79% -13% -11% -2% -6% -15%   -21%  
S&P 500 Max Drawdown -31% -1% -25% -1% -2% -15%   -12% <===

[1] Cumulative total returns since the beginning of 2020
[2] 2025 data is for the year up to 11/4/2025 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year

 
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read AROC Dip Buyer Analyses and BKR Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.

Whatever your view on either of these stocks, investing in one or two stocks remains a risky proposition. Instead, the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.