AROC vs USAC: Which Is the Better Buy in 2026?

Last updated October 2026

Short answer

AROC is the larger of the two ($5.18B market cap): the incumbent the market prices for continued execution (13.59x forward earnings, beta 0.91). USAC is the smaller challenger ($3.70B), actually pricier on forward earnings (15.68x): more room to run, but more to prove. The real question is which set of drivers you believe, and whether owning one (or both) leaves you over-concentrated.

AROC vs USAC: the tie-breaker metrics

Same yardstick, side by side (as of October 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.

Metric	AROC	USAC	What it tells you
Market cap	$5.18B	$3.70B	Size. The larger name is the incumbent; the smaller has more room to grow and more to prove.
Forward P/E	13.59	15.68	Valuation on next year's expected earnings, the same yardstick for both. Lower is cheaper for that growth; higher means the market is paying up.
Trailing P/E	15.89	24.08	Valuation on the last 12 months. A big drop from trailing to forward means the market expects earnings to jump, so more growth is already in the price.
Beta	0.91	0.25	Volatility vs the market. Above 1 swings harder than the index; below 1 is steadier. Higher beta means bigger drawdowns to hold through.
Price vs 52-week range	35% of range	42% of range	Where today's price sits between the 52-week low and high. Near the high is momentum with less margin of safety; near the low is out of favor or a discount, depending on why.
Price / book	3.34	12.89	How much you pay over book value. Very high can signal an asset-light, high-return business or a rich price.

Reading it: AROC is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.

Before you buy: how AROC and USAC affect your concentration

The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. AROC and USAC share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.

This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined AROC and USAC exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.

What does Archrock (AROC) do?

Archrock, Inc. is a Houston-based energy infrastructure company that owns and operates a fleet of natural gas compressors, about 4.5 million operating horsepower at the end of June 2026, and rents them to producers and midstream operators under multi-year contracts. Compression is needed at almost every step of the gas value chain: at the wellhead, in gathering systems, at processing plants and along pipelines. Its Contract Operations segment (about $329 million of second-quarter 2026 revenue of ~$371 million, or roughly 89%) earns monthly fees based on horsepower deployed, with heavy exposure to the Permian Basin and an adjusted gross margin of about 71%. A smaller Aftermarket Services segment sells parts, maintenance and overhauls for customer-owned equipment. Acquisitions of TOPS (2024) and Natural Gas Compression Systems (2025) pushed the fleet further toward large, high-horsepower units.

Full AROC guide

What does USA Compression Partners, LP (USAC) do?

USA Compression Partners owns a fleet of natural gas compression packages and rents them to producers, processors, gatherers, and pipeline operators under fixed monthly fee contracts. The work is measured in horsepower, and the partnership focuses on the large midstream end of it rather than small wellhead units. At June 30, 2026 the fleet stood at ~4.95 million horsepower, of which ~4.46 million was revenue-generating across ~6,508 compression units, at average utilization of ~92.0%. It reports as a single segment. Headquarters is in Dallas, and USAC Management had ~885 full-time employees at the end of 2025, with another ~594 added through the January 2026 purchase of J-W Power Company. Energy Transfer owns 100% of the general partner and ~46.1 million common units, roughly a ~32% limited partner interest, and supplies shared back-office staff.

Full USAC guide

AROC vs USAC: how do they differ?

Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.

AROC drivers: U.S. natural gas volume growth; Contracted fleet and pricing.
USAC drivers: Contracted horsepower and pricing; J-W Power integration.

Which fits which kind of investor

A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: Archrock's demand ultimately depends on U.S. For USAC, utilization fell to ~92.0% from ~94.4% a year earlier while fleet horsepower grew ~28.3%, which is what adding capacity faster than it gets contracted looks like.

AROC or USAC: which should you pick?

Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick AROC if you believe its drivers more; USAC if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the AROC and USAC guides.

AROC vs USAC: the full fundamentals

AROC. At ~$5.2 billion of equity value plus roughly $2.35 billion of long-term debt (leverage ~2.6x), Archrock trades at about 8.5x the midpoint of its 2026 adjusted EBITDA guidance as of October 2026. That multiple is lower than when the shares sat near the 52-week high of ~$42.23 in June, reflecting the trimmed outlook, lower utilization and weaker aftermarket results. Second-quarter diluted EPS was $0.38, up from $0.36, and 2026 net income guidance is about $291 to $311 million. Third-quarter results, not yet scheduled by the company as of mid-October, will update these figures.

USAC. At roughly ~$25.15 per unit, the units yield about 8.4% and the market value is near ~$3.65 billion, with enterprise value around 9.6x trailing EBITDA. The trailing P/E near ~24x reads high for an asset-heavy business because depreciation of ~$89.1 million a quarter suppresses net income; guided Distributable Cash Flow of ~$480 million to ~$510 million is closer to ~$3.30 to ~$3.50 per unit, putting the units near ~7.2x to ~7.6x that measure. Third-quarter results on November 3, 2026 (consensus about $0.37 per unit on ~$348 million of revenue) are the next test of utilization and coverage.

Headline figures (approximate, October 2026): AROC shows q2 2026 revenue ~$371.2 million (vs ~$383.2 million in Q2 2025), q2 2026 adjusted ebitda ~$212.6 million (flat year over year), 2026 adjusted ebitda guidance $865 to $885 million (narrowed from $865 to $915 million), market cap ~$5.2 billion (share price ~$29.50); USAC shows revenue (ttm) ~$1.18B, q2 2026 revenue ~$342.1M (+~37% YoY), q2 2026 adjusted ebitda ~$193.2M (~56.5% margin), net income (ttm) ~$144M (~$1.06 per unit).

The bottom line: AROC vs USAC

AROC and USAC are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined AROC and USAC exposure against your real portfolio. It is not an investment adviser.

Wondering how AROC or USAC fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.

Investing in Archrock with AI

Connect the broker you already use and ask Walnut's AI how AROC fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.

Does AROC fit me?

FAQ

What is the difference between AROC and USAC?

Archrock, Inc. USA Compression Partners owns a fleet of natural gas compression packages and rents them to producers, processors, gatherers, and pipeline operators under fixed monthly fee contracts. They show up together because they share investment themes, but they are different businesses, so the better fit depends on which thesis you are expressing.

Is AROC or USAC the better stock?

Neither is universally better. AROC is the larger incumbent; USAC is the smaller challenger and looks pricier on forward earnings. Walnut is informational, not investment advice. Compare what each does, the tie-breaker metrics above, and the risks, then decide which fits your thesis and what you already own.

Which is cheaper, AROC or USAC?

On forward P/E (as of October 2026), AROC trades at 13.59x and USAC at 15.68x, so AROC is the cheaper of the two on next year's expected earnings. A lower multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is compounding.

Should you own both AROC and USAC?

Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both, and whether adding either over-concentrates you, before you buy.

What are the risks of AROC vs USAC?

AROC: Archrock's demand ultimately depends on U.S. oil and gas activity, so a sustained drop in crude prices that slows Permian drilling, and with it associated gas growth, could delay new orders and pressure rates even though existing contracts keep running. The 2026 guidance trim showed that costs such as make-ready work, lube oil and incentive compensation can erode margins while revenue grows. Period-end utilization of 94.4%, down from 96.0%, leaves less room before idle horsepower starts to weigh on returns. Aftermarket Services is volatile: revenue fell about 35% in the second quarter on lower parts sales and maintenance work, and full-year guidance of $175 to $185 million is well below the prior-year pace. Competitors including Kodiak Gas Services and USA Compression Partners are also adding large-horsepower capacity, which could weaken pricing. Finally, the $1.4 to $1.6 billion growth capex plan for 2027 through 2030 competes with dividends, buybacks and debt reduction for cash, and customer concentration rises with large contracts like the ~665,000 horsepower agreement. USAC: Utilization fell to ~92.0% from ~94.4% a year earlier while fleet horsepower grew ~28.3%, which is what adding capacity faster than it gets contracted looks like. Net long-term debt of ~$2.94 billion sits at roughly ~3.7x the midpoint of guided 2026 Adjusted EBITDA, including ~$1.21 billion drawn on a floating-rate revolver at June 30 (since partly repaid with the September 2026 issue of $600 million of 6.750% notes due 2035, which swaps floating-rate exposure for a fixed coupon), ~$1.00 billion of 7.125% notes due 2029, and ~$750.0 million of 6.250% notes due 2033, so quarterly interest expense of ~$49.3 million is a standing claim on cash ahead of the distribution. Demand for compression tracks natural gas and crude production, and a drilling slowdown shows up first as idle horsepower and then as renegotiated rates. Extended equipment lead times support pricing on existing fleets while delaying revenue from units already ordered. The partnership also carries ~$196.5 million of deferred income taxes from acquired corporate subsidiaries, and Texas imposes an entity-level margin tax, so some tax is paid at the partnership level. On a GAAP basis the payout runs at roughly twice trailing earnings per unit, so the distribution depends on cash flow measures such as Distributable Cash Flow rather than reported net income.

Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell AROC or USAC; figures are approximate and dated (as of October 2026). Verify current data before investing.