ARC Resources (OTCMKTS:AETUF – Get Free Report) and Altex Industries (OTCMKTS:ALTX – Get Free Report) are both oils/energy companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, profitability, valuation and earnings.
Risk and Volatility
ARC Resources has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500. Comparatively, Altex Industries has a beta of 0.22, suggesting that its stock price is 78% less volatile than the S&P 500.
Earnings & Valuation
This table compares ARC Resources and Altex Industries’ revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ARC Resources | $4.19 billion | 2.51 | $1.18 billion | $1.48 | 11.87 |
| Altex Industries | $30,000.00 | 87.02 | -$130,000.00 | N/A | N/A |
Analyst Recommendations
This is a breakdown of current ratings and target prices for ARC Resources and Altex Industries, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ARC Resources | 0 | 0 | 2 | 1 | 3.33 |
| Altex Industries | 0 | 0 | 1 | 0 | 3.00 |
ARC Resources currently has a consensus target price of $21.92, indicating a potential upside of 24.74%. Altex Industries has a consensus target price of $56.00, indicating a potential upside of 24,247.83%. Given Altex Industries’ higher possible upside, analysts plainly believe Altex Industries is more favorable than ARC Resources.
Profitability
This table compares ARC Resources and Altex Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ARC Resources | 22.70% | 16.48% | 9.98% |
| Altex Industries | -333.33% | -7.10% | -3.45% |
Insider and Institutional Ownership
2.5% of ARC Resources shares are owned by institutional investors. 0.3% of ARC Resources shares are owned by insiders. Comparatively, 49.8% of Altex Industries shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Summary
ARC Resources beats Altex Industries on 10 of the 13 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 Altex Industries
Altex Industries, Inc., through its subsidiary, Altex Oil Corporation, owns interests in productive onshore oil and gas properties located in Utah and Wyoming. The company was incorporated in 1985 and is based in Denver, Colorado.
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