ARC Resources (OTCMKTS:AETUF) and Lonestar Resources US (OTCMKTS:LONEQ) Head to Head Review

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

Insider and Institutional Ownership

2.5% of ARC Resources shares are held by institutional investors. 2.9% of Lonestar Resources US shares are held by insiders. Comparatively, 0.3% of ARC Resources shares are held by 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.

Analyst Recommendations

This is a breakdown of current recommendations for Lonestar Resources US and ARC Resources, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lonestar Resources US	0	0	0	0	N/A
ARC Resources	0	0	1	1	3.50

ARC Resources has a consensus price target of $25.50, suggesting a potential upside of 51.79%. Given ARC Resources’ higher possible upside, analysts clearly believe ARC Resources is more favorable than Lonestar Resources US.

Valuation and Earnings

This table compares Lonestar Resources US and ARC Resources’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lonestar Resources US	N/A	N/A	N/A	N/A	N/A
ARC Resources	$4.19 billion	2.40	$1.18 billion	$1.48	11.35

ARC Resources has higher revenue and earnings than Lonestar Resources US.

Profitability

This table compares Lonestar Resources US and ARC Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lonestar Resources US	N/A	N/A	N/A
ARC Resources	22.70%	16.48%	9.98%

Summary

ARC Resources beats Lonestar Resources US on 8 of the 9 factors compared between the two stocks.

About Lonestar Resources US

Lonestar Resources US Inc., an independent oil and gas company, engages in the acquisition, development, and production of unconventional oil, natural gas liquids, and natural gas properties in the United States. It primarily focuses on Eagle Ford Shale properties that cover an area of 53,831 net acres in Texas counties. The company was incorporated in 2015 and is headquartered in Fort Worth, Texas. On September 30, 2020, Lonestar Resources US Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas.

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.