Analyzing ARC Resources (AETUF) and Sandridge Mississippian Trust I (SDT)

ARC Resources (OTCMKTS:AETUF) and Sandridge Mississippian Trust I (NYSE:SDT) are both oils/energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, profitability, valuation, dividends and risk.

Dividends

ARC Resources pays an annual dividend of $0.45 per share and has a dividend yield of 6.0%. Sandridge Mississippian Trust I pays an annual dividend of $0.18 per share and has a dividend yield of 18.8%.

Valuation and Earnings

This table compares ARC Resources and Sandridge Mississippian Trust I’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ARC Resources $945.11 million 2.80 $299.99 million N/A N/A
Sandridge Mississippian Trust I $8.98 million 2.99 $6.09 million N/A N/A

ARC Resources has higher revenue and earnings than Sandridge Mississippian Trust I.

Volatility & Risk

ARC Resources has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500. Comparatively, Sandridge Mississippian Trust I has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500.

Insider & Institutional Ownership

1.5% of Sandridge Mississippian Trust I shares are owned by institutional investors. 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.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for ARC Resources and Sandridge Mississippian Trust I, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ARC Resources 0 0 3 0 3.00
Sandridge Mississippian Trust I 0 0 0 0 N/A

Profitability

This table compares ARC Resources and Sandridge Mississippian Trust I’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ARC Resources 2.85% 1.11% 0.66%
Sandridge Mississippian Trust I 63.84% 18.00% 18.00%

Summary

Sandridge Mississippian Trust I beats ARC Resources on 7 of the 10 factors compared between the two stocks.

ARC Resources Company Profile

ARC Resources Ltd., together with its subsidiaries, engages in the acquisition, exploration, development, and production of crude oil, natural gas, condensate, and natural gas liquids. The company primarily holds interests in the Montney resource play properties located in northeast British Columbia and northern Alberta; and other assets located in the Cardium formation in the Pembina area of Alberta. As of December 31, 2017, it had proved plus probable reserves of 836.1 MMboe. The company was founded in 1996 and is headquartered in Calgary, Canada.

Sandridge Mississippian Trust I Company Profile

SandRidge Mississippian Trust I, a statutory trust, holds royalty interests in specified oil and natural gas properties located in the Mississippian formation in Alfalfa, Garfield, Grant, and Woods counties in Oklahoma. As of December 31, 2017, the company's properties comprised royalty interests in the initial wells; and 121 additional wells that were drilled and perforated by the company. SandRidge Mississippian Trust I was founded in 2010 and is based in Austin, Texas.

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