Head-To-Head Analysis: ARC Resources (OTCMKTS:AETUF) vs. Columbine Valley Resources (OTCMKTS:TRXO)

Columbine Valley Resources (OTCMKTS:TRXO) and ARC Resources (OTCMKTS:AETUF) are both oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, risk, institutional ownership and earnings.

Insider and Institutional Ownership

2.5% of ARC Resources shares are held by institutional investors. 18.4% of Columbine Valley Resources shares are held by company insiders. Comparatively, 0.3% of ARC Resources shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Risk & Volatility

Columbine Valley Resources has a beta of -49.51, suggesting that its stock price is 5,051% less volatile than the S&P 500. Comparatively, ARC Resources has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500.

Earnings & Valuation

This table compares Columbine Valley Resources and ARC Resources’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Columbine Valley Resources	N/A	N/A	N/A	N/A	N/A
ARC Resources	$4.19 billion	2.60	$1.18 billion	$1.94	9.40

ARC Resources has higher revenue and earnings than Columbine Valley Resources.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Columbine Valley Resources and ARC Resources, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Columbine Valley Resources	0	0	0	0	N/A
ARC Resources	0	0	2	0	3.00

ARC Resources has a consensus price target of $21.92, indicating a potential upside of 20.16%. Given ARC Resources’ higher probable upside, analysts clearly believe ARC Resources is more favorable than Columbine Valley Resources.

Profitability

This table compares Columbine Valley Resources and ARC Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Columbine Valley Resources	N/A	N/A	N/A
ARC Resources	28.19%	22.43%	13.62%

Summary

ARC Resources beats Columbine Valley Resources on 8 of the 9 factors compared between the two stocks.

About Columbine Valley Resources

Columbine Valley Resources, Inc. engages in the acquisition, exploration, and development of oil and gas properties in the United States. The company owns various properties, which are primarily located in the Rocky Mountain region of Wyoming, as well as Nebraska. Columbine Valley Resources, Inc. is headquartered in Broomfield, Colorado.

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.