ECA Marcellus Trust I (OTCMKTS:ECT) vs. Sanchez Energy (OTCMKTS:SNEC) Financial Contrast

Sanchez Energy (OTCMKTS:SNEC) and ECA Marcellus Trust I (OTCMKTS:ECT) are both small-cap oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, earnings, profitability, analyst recommendations, institutional ownership, valuation and dividends.

Earnings & Valuation

This table compares Sanchez Energy 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
Sanchez Energy	$1.06 billion	0.00	$85.21 million	N/A	N/A
ECA Marcellus Trust I	$4.15 million	1.70	$2.90 million	N/A	N/A

Sanchez Energy has higher revenue and earnings than ECA Marcellus Trust I.

Risk and Volatility

Sanchez Energy has a beta of 1.71, meaning that its stock price is 71% more volatile than the S&P 500. Comparatively, ECA Marcellus Trust I has a beta of 2, meaning that its stock price is 100% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sanchez Energy	2.22%	-18.15%	3.09%
ECA Marcellus Trust I	46.53%	4.37%	4.32%

Analyst Ratings

This is a summary of recent ratings and price targets for Sanchez Energy and ECA Marcellus Trust I, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sanchez Energy	0	0	0	0	N/A
ECA Marcellus Trust I	0	0	0	0	N/A

Institutional and Insider Ownership

0.6% of Sanchez Energy shares are owned by institutional investors. Comparatively, 2.0% of ECA Marcellus Trust I shares are owned by institutional investors. 11.1% of Sanchez Energy shares are owned by company insiders. 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.

Summary

ECA Marcellus Trust I beats Sanchez Energy on 5 of the 8 factors compared between the two stocks.

About Sanchez Energy

Sanchez Energy Corporation, an independent exploration and production company, focuses on the acquisition and development of onshore unconventional oil and natural gas resources in the United States. It engages in the horizontal development of resources from the Eagle Ford Shale in South Texas. It also holds an undeveloped acreage position in the Tuscaloosa Marine Shale (TMS) in Mississippi and Louisiana. As of December 31, 2018, the company had assembled approximately 271,000 net acres in the Eagle Ford Shale; and owned approximately 34,000 net acres in the TMS. Sanchez Energy Corporation was founded in 2011 and is headquartered in Houston, Texas.

About ECA Marcellus Trust I

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.