Arc Resources (OTCMKTS:AETUF) versus California Resources (NYSE:CRC) Head-To-Head Comparison

Arc Resources (OTCMKTS:AETUF) and California Resources (NYSE:CRC) are both energy companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, valuation, analyst recommendations, institutional ownership and dividends.

Earnings & Valuation

This table compares Arc Resources and California Resources”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arc Resources	$4.35 billion	3.20	$912.59 million	$1.79	13.71
California Resources	$3.95 billion	1.08	$363.00 million	($5.67)	-8.51

Arc Resources has higher revenue and earnings than California Resources. California Resources is trading at a lower price-to-earnings ratio than Arc Resources, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

2.5% of Arc Resources shares are owned by institutional investors. Comparatively, 97.8% of California Resources shares are owned by institutional investors. 0.3% of Arc Resources shares are owned by insiders. Comparatively, 0.5% of California Resources shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Arc Resources and California Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arc Resources	19.75%	16.67%	9.09%
California Resources	-18.11%	9.56%	4.29%

Analyst Ratings

This is a summary of current recommendations for Arc Resources and California Resources, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arc Resources	1	10	2	0	2.08
California Resources	1	2	9	1	2.77

California Resources has a consensus price target of $73.78, suggesting a potential upside of 52.84%. Given California Resources’ stronger consensus rating and higher possible upside, analysts clearly believe California Resources is more favorable than Arc Resources.

Dividends

Arc Resources pays an annual dividend of $0.59 per share and has a dividend yield of 2.4%. California Resources pays an annual dividend of $1.68 per share and has a dividend yield of 3.5%. Arc Resources pays out 33.0% of its earnings in the form of a dividend. California Resources pays out -29.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. California Resources has raised its dividend for 1 consecutive years. California Resources is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

Arc Resources has a beta of 0.27, meaning that its stock price is 73% less volatile than the S&P 500. Comparatively, California Resources has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500.

Summary

California Resources beats Arc Resources on 10 of the 18 factors compared between the two stocks.

About Arc Resources

ARC Resources Ltd. is a Canadian energy company that explores for, develops and produces natural gas, condensate, crude oil and other natural gas liquids. Its operations are focused on the Montney formation in Alberta and British Columbia, where the company develops unconventional energy resources. Founded in 1996 and headquartered in Calgary, ARC has built its business around the Montney, a large resource basin spanning parts of western Canada. Its production is marketed to customers in Canada and international markets, including through connections to liquefied natural gas export infrastructure.

About California Resources

California Resources Corporation is an independent energy company focused on developing and producing oil and natural gas in California. Its operations include exploration, production and management of energy resources, with products that include crude oil, natural gas and natural gas liquids. The company was formed in 2014 when it separated from Occidental Petroleum. Its activities are concentrated in California, where it operates across several major oil-producing regions. In 2024, California Resources completed its acquisition of Aera Energy, expanding its California operations.