ARC Resources (OTCMKTS:AETUF) and ECA Marcellus Trust I (OTCMKTS:ECT) Critical Contrast

ARC Resources (OTCMKTS:AETUFGet Rating) and ECA Marcellus Trust I (OTCMKTS:ECTGet Rating) are both oils/energy companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, earnings, profitability, analyst recommendations, risk, institutional ownership and valuation.

Insider & Institutional Ownership

0.0% of ARC Resources shares are owned by institutional investors. Comparatively, 2.0% of ECA Marcellus Trust I shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares ARC Resources and ECA Marcellus Trust I’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ARC Resources 18.43% 24.69% 12.49%
ECA Marcellus Trust I 46.53% 4.37% 4.32%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for ARC Resources and ECA Marcellus Trust I, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ARC Resources 0 0 6 0 3.00
ECA Marcellus Trust I 0 0 0 0 N/A

ARC Resources currently has a consensus target price of $24.04, suggesting a potential upside of 69.31%. Given ARC Resources’ higher possible upside, analysts clearly believe ARC Resources is more favorable than ECA Marcellus Trust I.

Earnings and Valuation

This table compares ARC Resources and ECA Marcellus Trust I’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ARC Resources $4.08 billion 2.28 $627.63 million $1.72 8.26
ECA Marcellus Trust I $4.15 million 1.70 $2.90 million N/A N/A

ARC Resources has higher revenue and earnings than ECA Marcellus Trust I.

Risk and Volatility

ARC Resources has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500. Comparatively, ECA Marcellus Trust I has a beta of 2, meaning that its share price is 100% more volatile than the S&P 500.

Summary

ARC Resources beats ECA Marcellus Trust I on 8 of the 11 factors compared between the two stocks.

About ARC Resources

(Get Rating)

ARC Resources Ltd. explores, develops, and produces crude oil, natural gas, and natural gas liquids in Canada. The company holds interests in the Montney properties located in northeast British Columbia and northern Alberta; and Pembina Cardium properties in central Alberta. As of December 31, 2020, it had proved plus probable reserves of 929 millions of barrels of oil equivalent. ARC Resources Ltd. was founded in 1996 and is headquartered in Calgary, Canada.

About ECA Marcellus Trust I

(Get Rating)

ECA Marcellus Trust I is a statutory trust. It owns royalty interest in producing wells and development wells. It also acquires horizontal natural gas development wells to be drilled to the Marcellus Shale formation. The company was founded in March 2010 and is headquartered in Houston, TX.

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