Amplify Energy (NYSE:AMPY) vs. ECA Marcellus Trust I (OTCMKTS:ECT) Critical Review

Amplify Energy (NYSE:AMPYGet Free Report) and ECA Marcellus Trust I (OTCMKTS:ECTGet Free Report) are both small-cap oils/energy companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.

Institutional and Insider Ownership

42.8% of Amplify Energy shares are owned by institutional investors. Comparatively, 2.0% of ECA Marcellus Trust I shares are owned by institutional investors. 2.0% of Amplify Energy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Amplify Energy and ECA Marcellus Trust I, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Amplify Energy 0 0 3 0 3.00
ECA Marcellus Trust I 0 0 0 0 0.00

Amplify Energy presently has a consensus price target of $10.00, suggesting a potential upside of 73.46%. Given Amplify Energy’s stronger consensus rating and higher probable upside, equities analysts clearly believe Amplify Energy is more favorable than ECA Marcellus Trust I.

Profitability

This table compares Amplify Energy and ECA Marcellus Trust I’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Amplify Energy 20.99% 16.22% 8.79%
ECA Marcellus Trust I 46.53% 4.37% 4.32%

Risk and Volatility

Amplify Energy has a beta of 1.95, meaning that its stock price is 95% more volatile than the S&P 500. Comparatively, ECA Marcellus Trust I has a beta of 2, meaning that its stock price is 100% more volatile than the S&P 500.

Earnings & Valuation

This table compares Amplify Energy and ECA Marcellus Trust I”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Amplify Energy $307.60 million 0.75 $392.75 million $1.54 3.74
ECA Marcellus Trust I $4.15 million 1.70 $2.90 million N/A N/A

Amplify Energy has higher revenue and earnings than ECA Marcellus Trust I.

Summary

Amplify Energy beats ECA Marcellus Trust I on 9 of the 13 factors compared between the two stocks.

About Amplify Energy

(Get Free Report)

Amplify Energy Corp., together with its subsidiaries, engages in the acquisition, development, exploitation, and production of oil and natural gas properties in the United States. The company’s properties consist of operated and non-operated working interests in producing and undeveloped leasehold acreage, as well as working interests in identified producing wells located in Oklahoma, the Rockies, federal waters offshore Southern California, East Texas/North Louisiana, and Eagle Ford. The company is based in Houston, Texas.

About ECA Marcellus Trust I

(Get Free Report)

ECA Marcellus Trust I is a statutory trust. It owns royalty interest in producing wells and development wells. It also acquires horizontal natural gas development wells to be drilled to the Marcellus Shale formation. The company was founded in March 2010 and is headquartered in Houston, TX.

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