Head to Head Analysis: FEC Resources (OTCMKTS:FECOF) vs. ARC Resources (OTCMKTS:AETUF)

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

Volatility and Risk

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

Institutional and Insider Ownership

0.0% of FEC Resources shares are held by institutional investors. Comparatively, 2.5% of ARC 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, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FEC Resources	N/A	N/A	-$190,000.00	N/A	N/A
ARC Resources	$4.19 billion	2.55	$1.18 billion	$1.54	11.72

ARC Resources has higher revenue and earnings than FEC Resources.

Analyst Ratings

This is a summary of recent ratings for FEC Resources and ARC Resources, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FEC Resources	0	0	0	0	0.00
ARC Resources	0	0	1	2	3.67

ARC Resources has a consensus target price of $25.00, suggesting a potential upside of 38.50%. Given ARC Resources’ stronger consensus rating and higher possible upside, analysts clearly believe ARC Resources is more favorable than FEC Resources.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
FEC Resources	N/A	195.62%	164.36%
ARC Resources	26.33%	16.69%	10.09%

Summary

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

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.

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.