Houston American Energy (NYSE:HUSA – Get Free Report) and ARC Resources (OTCMKTS:AETUF – Get Free Report) are both oils/energy companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, profitability, institutional ownership and earnings.
Risk & Volatility
Houston American Energy has a beta of 0.5, meaning that its share price is 50% less volatile than the S&P 500. Comparatively, ARC Resources has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Houston American Energy and ARC Resources, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Houston American Energy | 0 | 0 | 0 | 0 | 0.00 |
| ARC Resources | 0 | 0 | 0 | 2 | 4.00 |
Profitability
This table compares Houston American Energy and ARC Resources’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Houston American Energy | -544.15% | -6.10% | -5.86% |
| ARC Resources | 24.40% | 14.48% | 8.76% |
Earnings & Valuation
This table compares Houston American Energy and ARC Resources”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Houston American Energy | $790,000.00 | 22.70 | -$3.21 million | ($0.32) | -4.28 |
| ARC Resources | $2.98 billion | 3.85 | $820.37 million | $1.37 | 14.16 |
ARC Resources has higher revenue and earnings than Houston American Energy. Houston American Energy 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 & Insider Ownership
12.2% of Houston American Energy shares are owned by institutional investors. Comparatively, 2.5% of ARC Resources shares are owned by institutional investors. 15.4% of Houston American Energy shares are owned by company insiders. Comparatively, 0.3% of ARC Resources shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
ARC Resources beats Houston American Energy on 10 of the 13 factors compared between the two stocks.
About Houston American Energy
Houston American Energy Corp., an independent oil and gas company, engages in the acquisition, exploration, exploitation, development, and production of natural gas, crude oil, and condensate. Its principal properties are located primarily in the Texas Permian Basin, the South American country of Colombia, and the onshore Louisiana Gulf Coast region. The company is based in Houston, 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.
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