Alvopetro Energy (OTCMKTS:ALVOF – Get Free Report) and Arc Resources (OTCMKTS:AETUF – Get Free Report) are both energy companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.
Volatility and Risk
Alvopetro Energy has a beta of 0.01, meaning that its share price is 99% less volatile than the S&P 500. Comparatively, Arc Resources has a beta of 0.27, meaning that its share price is 73% less volatile than the S&P 500.
Dividends
Alvopetro Energy pays an annual dividend of $0.48 per share and has a dividend yield of 7.1%. Arc Resources pays an annual dividend of $0.59 per share and has a dividend yield of 2.4%. Alvopetro Energy pays out 64.9% of its earnings in the form of a dividend. Arc Resources pays out 33.0% 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.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Alvopetro Energy | 0 | 0 | 0 | 1 | 4.00 |
| Arc Resources | 1 | 10 | 3 | 0 | 2.14 |
Earnings and Valuation
This table compares Alvopetro Energy and Arc Resources”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Alvopetro Energy | $57.95 million | 4.38 | $23.10 million | $0.74 | 9.19 |
| Arc Resources | $4.35 billion | 3.20 | $912.59 million | $1.79 | 13.71 |
Arc Resources has higher revenue and earnings than Alvopetro Energy. Alvopetro 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 Alvopetro Energy and Arc Resources’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Alvopetro Energy | 42.13% | 27.90% | 19.95% |
| Arc Resources | 19.75% | 16.67% | 9.09% |
Institutional and Insider Ownership
2.5% of Arc Resources shares are held by institutional investors. 0.3% of Arc Resources shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Summary
Arc Resources beats Alvopetro Energy on 9 of the 16 factors compared between the two stocks.
About Alvopetro Energy
Alvopetro Energy Ltd. operates as an independent upstream and midstream operator. It engages in the acquisition, exploration, development, and production of hydrocarbons. The company holds interests in the Caburé and Murucututu natural gas assets, Block 182 and 183 exploration assets, and Bom Lugar and Mãe-da-lua oil fields, which covers an area of approximately 22,166 acres in the Recôncavo basin onshore Brazil. Alvopetro Energy Ltd. was incorporated in 2013 and is headquartered in Calgary, Canada.
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.
Receive News & Ratings for Alvopetro Energy Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Alvopetro Energy and related companies with MarketBeat.com's FREE daily email newsletter.
