Parsley Energy (NYSE:PE) and ARC Resources (OTCMKTS:AETUF) are both oils/energy companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, earnings, analyst recommendations, risk, profitability, valuation and institutional ownership.
This table compares Parsley Energy and ARC Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
ARC Resources pays an annual dividend of $0.45 per share and has a dividend yield of 8.3%. Parsley Energy does not pay a dividend.
Earnings and Valuation
This table compares Parsley Energy and ARC Resources’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Parsley Energy||$1.83 billion||3.09||$369.13 million||$1.41||12.65|
|ARC Resources||$1.16 billion||1.66||$164.94 million||N/A||N/A|
Parsley Energy has higher revenue and earnings than ARC Resources.
Risk & Volatility
Parsley Energy has a beta of 0.41, meaning that its share price is 59% less volatile than the S&P 500. Comparatively, ARC Resources has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500.
Institutional and Insider Ownership
83.2% of Parsley Energy shares are held by institutional investors. 12.1% of Parsley Energy shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This is a summary of recent recommendations and price targets for Parsley Energy and ARC Resources, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Parsley Energy presently has a consensus target price of $31.19, suggesting a potential upside of 74.92%. Given Parsley Energy’s higher possible upside, equities research analysts clearly believe Parsley Energy is more favorable than ARC Resources.
Parsley Energy beats ARC Resources on 11 of the 15 factors compared between the two stocks.
About Parsley Energy
Parsley Energy, Inc., an independent oil and natural gas company, engages in the acquisition, development, exploration, production, and sale of crude oil and natural gas properties in the Permian Basin in west Texas and Southeastern New Mexico. As of December 31, 2018, its acreage position consisted of 198,946 net acres, including 154,107 net acres in the Midland Basin and 44,839 net acres in the Delaware Basin; and operated 425.3 net acres of the horizontal wells and 735.7 net acres of the vertical wells, as well an estimated proved oil, natural gas, and natural gas liquid reserves of 521.7 MMBoe. The company was founded in 2008 and is headquartered in Austin, Texas.
About ARC Resources
ARC Resources Ltd., together with its subsidiaries, acquires, develops, and holds interest in petroleum and natural gas properties and assets in Canada. The company holds interests in the Montney properties located in northeast British Columbia and northern Alberta; and Cardium properties in the Pembina area of Alberta. ARC Resources Ltd. was founded in 1996 and is headquartered in Calgary, Canada.
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