Reviewing FEC Resources (OTCMKTS:FECOF) & ARC Resources (OTCMKTS:AETUF)

ARC Resources (OTCMKTS:AETUF) and FEC Resources (OTCMKTS:FECOF) 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, valuation, profitability, risk, dividends, earnings and institutional ownership.

Earnings & Valuation

This table compares ARC Resources and FEC Resources”s revenue, earnings per share and valuation.

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

ARC Resources has higher revenue and earnings than FEC Resources.

Analyst Ratings

This is a summary of current ratings and price targets for ARC Resources and FEC Resources, as provided by MarketBeat.

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

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

Risk and Volatility

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

Profitability

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

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

Institutional and Insider Ownership

2.5% of ARC Resources shares are owned by institutional investors. Comparatively, 0.0% of FEC Resources shares are owned by institutional investors. 0.3% of ARC Resources shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

ARC Resources beats FEC Resources on 10 of the 12 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 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.