Comparing Tourmaline Oil (OTCMKTS:TRMLF) & Arc Resources (OTCMKTS:AETUF)

Tourmaline Oil (OTCMKTS:TRMLF) and Arc Resources (OTCMKTS:AETUF) are both large-cap energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, earnings, dividends, profitability and risk.

Profitability

This table compares Tourmaline Oil and Arc Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tourmaline Oil	21.16%	8.30%	5.79%
Arc Resources	29.09%	16.98%	10.32%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Tourmaline Oil and Arc Resources, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tourmaline Oil	1	1	0	1	2.33
Arc Resources	0	0	3	1	3.25

Valuation & Earnings

This table compares Tourmaline Oil and Arc Resources”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tourmaline Oil	$4.41 billion	4.29	$922.55 million	$2.43	20.15
Arc Resources	$2.98 billion	4.40	$820.37 million	$1.62	13.84

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

Insider & Institutional Ownership

1.8% of Tourmaline Oil shares are owned by institutional investors. Comparatively, 2.5% of Arc Resources shares are owned by institutional investors. 0.3% of Arc Resources shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Tourmaline Oil has a beta of -0.42, meaning that its share price is 142% less volatile than the S&P 500. Comparatively, Arc Resources has a beta of 0.45, meaning that its share price is 55% less volatile than the S&P 500.

Dividends

Tourmaline Oil pays an annual dividend of $1.46 per share and has a dividend yield of 3.0%. Arc Resources pays an annual dividend of $0.53 per share and has a dividend yield of 2.4%. Tourmaline Oil pays out 60.1% of its earnings in the form of a dividend. Arc Resources pays out 32.7% 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.

Summary

Arc Resources beats Tourmaline Oil on 10 of the 15 factors compared between the two stocks.

About Tourmaline Oil

Tourmaline Oil Corp. explores for and develops oil and natural gas properties in the Western Canadian Sedimentary Basin. The company holds interests in properties located in the Alberta Deep Basin, Northeast British Columbia Montney, and the Peace River High Triassic oil complex. Tourmaline Oil Corp. was incorporated in 2008 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.