Financial Contrast: FEC Resources (OTCMKTS:FECOF) vs. ARC Resources (OTCMKTS:AETUF)

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

Risk & Volatility

ARC Resources has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500. Comparatively, FEC Resources has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for ARC Resources and FEC Resources, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ARC Resources	0	0	1	1	3.50
FEC Resources	0	0	0	0	0.00

ARC Resources currently has a consensus target price of $25.00, suggesting a potential upside of 40.19%. Given ARC Resources’ stronger consensus rating and higher possible upside, research analysts clearly believe ARC Resources is more favorable than FEC Resources.

Insider & Institutional Ownership

2.5% of ARC Resources shares are held by institutional investors. Comparatively, 0.0% of FEC Resources shares are held by institutional investors. 0.3% of ARC Resources shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares ARC Resources and FEC Resources”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ARC Resources	$4.19 billion	2.52	$1.18 billion	$1.43	12.47
FEC Resources	N/A	N/A	-$190,000.00	N/A	N/A

ARC Resources has higher revenue and earnings than FEC Resources.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ARC Resources	22.19%	15.68%	9.46%
FEC Resources	N/A	195.62%	164.36%

Summary

ARC Resources beats FEC Resources on 10 of the 12 factors compared between the two stocks.

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.

About FEC Resources

FEC Resources Inc. engages in the exploration and development of oil and gas properties in the Philippines. The company, through its 6.8% interest in Forum Energy Limited, primarily owns a 70% interest in the GSEC101 offshore license covering an area of approximately 10,360 square kilometers located to the northwest of the Philippine Island of Palawan. FEC Resources Inc. is headquartered in Vancouver, Canada. FEC Resources Inc. operates as a subsidiary of PXP Energy Corporation.