Reviewing ECA Marcellus Trust I (OTCMKTS:ECT) & Sanchez Energy (OTCMKTS:SNEC)

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

Valuation & Earnings

This table compares ECA Marcellus Trust I and Sanchez Energy’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ECA Marcellus Trust I	$4.15 million	1.70	$2.90 million	N/A	N/A
Sanchez Energy	$1.06 billion	0.00	$85.21 million	N/A	N/A

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

Risk and Volatility

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

Analyst Recommendations

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

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

Institutional & Insider Ownership

2.0% of ECA Marcellus Trust I shares are held by institutional investors. Comparatively, 0.6% of Sanchez Energy shares are held by institutional investors. 11.1% of Sanchez Energy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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

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

Summary

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

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.

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.