Lonestar Resources US (NASDAQ:LONE) and Eca Marcellus Trust I (NYSE:ECT) are both small-cap oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.
Valuation and Earnings
This table compares Lonestar Resources US and Eca Marcellus Trust I’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Lonestar Resources US||$201.17 million||0.31||$19.35 million||($0.07)||-35.86|
|Eca Marcellus Trust I||$6.89 million||4.45||$5.75 million||N/A||N/A|
Lonestar Resources US has higher revenue and earnings than Eca Marcellus Trust I.
Institutional & Insider Ownership
57.9% of Lonestar Resources US shares are owned by institutional investors. Comparatively, 3.2% of Eca Marcellus Trust I shares are owned by institutional investors. 2.9% of Lonestar Resources US shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This table compares Lonestar Resources US and Eca Marcellus Trust I’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Lonestar Resources US||-9.68%||1.78%||0.45%|
|Eca Marcellus Trust I||83.04%||12.35%||12.00%|
Volatility and Risk
Lonestar Resources US has a beta of 2.44, meaning that its stock price is 144% more volatile than the S&P 500. Comparatively, Eca Marcellus Trust I has a beta of 1.87, meaning that its stock price is 87% more volatile than the S&P 500.
This is a summary of current recommendations for Lonestar Resources US and Eca Marcellus Trust I, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Lonestar Resources US||0||0||5||0||3.00|
|Eca Marcellus Trust I||0||0||0||0||N/A|
Lonestar Resources US currently has a consensus target price of $10.00, suggesting a potential upside of 298.41%. Given Lonestar Resources US’s higher possible upside, research analysts plainly believe Lonestar Resources US is more favorable than Eca Marcellus Trust I.
Eca Marcellus Trust I pays an annual dividend of $0.26 per share and has a dividend yield of 14.9%. Lonestar Resources US does not pay a dividend.
Lonestar Resources US beats Eca Marcellus Trust I on 7 of the 13 factors compared between the two stocks.
Lonestar Resources US Company Profile
Lonestar Resources US Inc., an independent oil and gas company, engages in the acquisition, development, and production of unconventional oil, natural gas liquids, and natural gas properties in the United States. The company primarily focuses on Eagle Ford Shale properties that cover an area of 57,491 net acres in Texas counties. Lonestar Resources US Inc. was incorporated in 2015 and is headquartered in Fort Worth, Texas.
Eca Marcellus Trust I Company Profile
ECA Marcellus Trust I owns royalty interests in producing and development horizontal natural gas wells for Energy Corporation of America (ECA). The company owns royalty interests in 14 producing wells and 40 development wells. Its royalty interests in the producing wells allow the company to receive 90% of the proceeds from the sale of production of natural gas attributable to ECA's interest in the producing wells; and 50% of the proceeds from the sale of production of natural gas attributable to ECA's interest in the development wells. ECA Marcellus Trust I was founded in 2010 and is based in Houston, Texas.
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