Eclipse Resources (NYSE: ECR) and PetroChina (NYSE:PTR) are both oils/energy companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.
Risk & Volatility
Eclipse Resources has a beta of 2.92, meaning that its stock price is 192% more volatile than the S&P 500. Comparatively, PetroChina has a beta of 1.49, meaning that its stock price is 49% more volatile than the S&P 500.
This table compares Eclipse Resources and PetroChina’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
PetroChina pays an annual dividend of $0.67 per share and has a dividend yield of 0.9%. Eclipse Resources does not pay a dividend. PetroChina pays out 37.6% of its earnings in the form of a dividend.
Insider & Institutional Ownership
83.7% of Eclipse Resources shares are owned by institutional investors. Comparatively, 0.2% of PetroChina shares are owned by institutional investors. 1.1% of Eclipse Resources shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This is a summary of current ratings and recommmendations for Eclipse Resources and PetroChina, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Eclipse Resources presently has a consensus target price of $2.57, suggesting a potential upside of 53.98%. PetroChina has a consensus target price of $82.69, suggesting a potential upside of 13.54%. Given Eclipse Resources’ higher probable upside, equities analysts clearly believe Eclipse Resources is more favorable than PetroChina.
Earnings and Valuation
This table compares Eclipse Resources and PetroChina’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Eclipse Resources||$383.66 million||1.31||$8.52 million||($0.04)||-41.75|
|PetroChina||$298.35 billion||0.45||$3.37 billion||$1.78||40.92|
PetroChina has higher revenue and earnings than Eclipse Resources. Eclipse Resources is trading at a lower price-to-earnings ratio than PetroChina, indicating that it is currently the more affordable of the two stocks.
PetroChina beats Eclipse Resources on 10 of the 16 factors compared between the two stocks.
About Eclipse Resources
Eclipse Resources Corporation, an independent exploration and production company, acquires and develops oil and natural gas properties in the Appalachian Basin. The company holds interests in the Utica Shale and Marcellus Shale areas. As of December 31, 2017, it had an acreage position approximately covering an area of 203,000 net acres in Eastern Ohio. The company's estimated proved reserves were 1,458.6 billion cubic feet of natural gas equivalent. Eclipse Resources Corporation was founded in 2011 and is headquartered in State College, Pennsylvania.
PetroChina Company Limited, together with its subsidiaries, engages in a range of petroleum related products, services, and activities in Mainland China and internationally. It operates through Exploration and Production, Refining and Chemicals, Marketing, and Natural Gas and Pipeline segments. The Exploration and Production segment engages in the exploration, development, production, and marketing of crude oil and natural gas. The Refining and Chemicals segment refines crude oil and petroleum products; produces and markets primary petrochemical products, derivative petrochemical products, and other chemical products. The Marketing segment is involved in marketing of refined products and trading business. The Natural Gas and Pipeline segment engages in the transmission of natural gas, crude oil, and refined products; and sale of natural gas. As of December 31, 2017, the company had a total length of 82,374 km, including 51,315 km of natural gas pipelines, 19,670 km of crude oil pipelines, and 11,389 km of refined product pipelines. It is also involved in the exploration, development, and production of oil sands and coalbed methane; trading of crude oil and petrochemical products; storage, chemical engineering, storage facilities, service station, and transportation facilities and related businesses; import and export of goods and technology; and import and export agency business, as well as provision of technology promotion, professional contractor, and main contractor services. The company was founded in 1988 and is headquartered in Beijing, the People's Republic of China. PetroChina Company Limited is a subsidiary of China National Petroleum Corporation.
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