Archrock Inc vs Baker Hughes Co

Archrock Inc (AROC) is slightly undervalued and Baker Hughes Co (BKR) is overvalued.

Against our estimates of intrinsic value, AROC trades at the wider discount: a margin of safety of +8%, against -39% for BKR.

Values as of the 19 Oct 2026 close.

Archrock Inc (AROC)

Discounting its cash flows at 8.3% (average of 3 methods) values the shares at $31.99; the price of $29.39 is 8% below that value, and 79% of that value comes from beyond year five.

Leak Score 47/100 on 11 of 12 signals

Baker Hughes Co (BKR)

Discounting its cash flows at 9.8% (average of 3 methods) values the shares at $40.18; the price of $55.81 is 39% above that value, and 73% of that value comes from beyond year five.

Leak Score 45/100 on 11 of 12 signals

MetricAROCBKR
VerdictSlightly undervaluedOvervalued
Price$29.39$55.81
Intrinsic value$31.99$40.18
Margin of safety+8%-39%
Leak Score47/100 (11/12)45/100 (11/12)
Market cap$5.2B$55.4B
Revenue growth, 5 years11.2%6.0%
Operating margin38.3%13.0%
Net margin21.6%11.2%
Return on equity21.9%16.5%
Debt to equity1.520.82
P/E15.8x17.9x
Forward P/E14.3x18.8x
P/B3.3x2.8x
Dividend yield3.1%1.7%

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