Contrasting Arc Resources (AETUF) and Its Rivals

Arc Resources (OTCMKTS:AETUF) is one of 1,051 publicly-traded companies in the “Oil, Gas & Consumable Fuels” industry, but how does it compare to its rivals? We will compare Arc Resources to related companies based on the strength of its earnings, risk, valuation, institutional ownership, analyst recommendations, profitability and dividends.

Dividends

Arc Resources pays an annual dividend of $0.59 per share and has a dividend yield of 2.4%. Arc Resources pays out 33.0% of its earnings in the form of a dividend. As a group, “Oil, Gas & Consumable Fuels” companies pay a dividend yield of 9.0% and pay out -122.4% of their earnings in the form of a dividend. Arc Resources lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Earnings & Valuation

This table compares Arc Resources and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Arc Resources	$4.35 billion	$912.59 million	13.71
Arc Resources Competitors	$14.79 billion	$5.51 billion	-0.30

Arc Resources’ rivals have higher revenue and earnings than Arc Resources. Arc Resources is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Arc Resources and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arc Resources	19.75%	16.67%	9.09%
Arc Resources Competitors	-470.80%	19.34%	6.40%

Risk and Volatility

Arc Resources has a beta of 0.27, indicating that its share price is 73% less volatile than the S&P 500. Comparatively, Arc Resources’ rivals have a beta of -3.72, indicating that their average share price is 472% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Arc Resources and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arc Resources	1	10	2	0	2.08
Arc Resources Competitors	5969	26960	40805	2413	2.52

As a group, “Oil, Gas & Consumable Fuels” companies have a potential upside of 27.00%. Given Arc Resources’ rivals stronger consensus rating and higher probable upside, analysts clearly believe Arc Resources has less favorable growth aspects than its rivals.

Institutional and Insider Ownership

2.5% of Arc Resources shares are owned by institutional investors. Comparatively, 30.8% of shares of all “Oil, Gas & Consumable Fuels” companies are owned by institutional investors. 0.3% of Arc Resources shares are owned by insiders. Comparatively, 15.3% of shares of all “Oil, Gas & Consumable Fuels” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Arc Resources rivals beat Arc Resources on 11 of the 15 factors compared.

About Arc Resources

ARC Resources Ltd. engages in the acquiring and developing crude oil, natural gas, condensate, and natural gas liquids in Canada. It primarily holds interests in the Montney basin located in Alberta and northeast British Columbia. ARC Resources Ltd. was founded in 1996 and is based in Calgary, Canada.