Arc Resources (OTCMKTS:AETUF) versus Baytex Energy (NYSE:BTE) Head to Head Comparison

Arc Resources (OTCMKTS:AETUF) and Baytex Energy (NYSE:BTE) are both energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, risk, profitability, valuation and dividends.

Volatility & Risk

Arc Resources has a beta of 0.2, indicating that its stock price is 80% less volatile than the S&P 500. Comparatively, Baytex Energy has a beta of 0.32, indicating that its stock price is 68% less volatile than the S&P 500.

Insider & Institutional Ownership

2.5% of Arc Resources shares are owned by institutional investors. Comparatively, 46.2% of Baytex Energy shares are owned by institutional investors. 0.3% of Arc Resources shares are owned by company insiders. Comparatively, 0.8% of Baytex Energy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

Arc Resources pays an annual dividend of $0.60 per share and has a dividend yield of 2.6%. Baytex Energy pays an annual dividend of $0.07 per share and has a dividend yield of 1.4%. Arc Resources pays out 38.5% of its earnings in the form of a dividend. Baytex Energy pays out -12.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Valuation and Earnings

This table compares Arc Resources and Baytex Energy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arc Resources	$4.35 billion	3.00	$912.59 million	$1.56	14.77
Baytex Energy	$2.56 billion	1.42	-$432.12 million	($0.57)	-8.71

Arc Resources has higher revenue and earnings than Baytex Energy. Baytex Energy is trading at a lower price-to-earnings ratio than Arc Resources, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Arc Resources and Baytex Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arc Resources	22.03%	15.49%	8.81%
Baytex Energy	-16.96%	-5.44%	-3.07%

Analyst Ratings

This is a summary of recent recommendations and price targets for Arc Resources and Baytex Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arc Resources	1	6	4	2	2.54
Baytex Energy	1	4	3	1	2.44

Summary

Arc Resources beats Baytex Energy on 12 of the 16 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 Baytex Energy

Baytex Energy Corp. is an oil & gas exploration and production company. The firm engages in the acquisition, development and production of crude oil and natural gas in the Western Canadian Sedimentary Basin and in the Eagle Ford in the United States. The company was founded on June 3, 1993 and is headquartered in Calgary, Canada.