Contrasting INPLAY OIL CP (OTCMKTS:IPOOF) & Arc Resources (OTCMKTS:AETUF)

INPLAY OIL CP (OTCMKTS:IPOOF) and Arc Resources (OTCMKTS:AETUF) are both energy companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, institutional ownership, profitability, valuation, analyst recommendations, risk and earnings.

Dividends

INPLAY OIL CP pays an annual dividend of $0.78 per share and has a dividend yield of 9.6%. Arc Resources pays an annual dividend of $0.56 per share and has a dividend yield of 2.9%. INPLAY OIL CP pays out 269.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Arc Resources pays out 30.8% of its earnings in the form of a dividend.

Risk and Volatility

INPLAY OIL CP has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500. Comparatively, Arc Resources has a beta of 0.37, indicating that its share price is 63% less volatile than the S&P 500.

Valuation and Earnings

This table compares INPLAY OIL CP and Arc Resources”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
INPLAY OIL CP	$210.66 million	1.07	$6.91 million	$0.29	27.90
Arc Resources	$2.98 billion	3.83	$820.37 million	$1.82	10.76

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

Profitability

This table compares INPLAY OIL CP and Arc Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
INPLAY OIL CP	-0.63%	1.28%	0.75%
Arc Resources	30.77%	18.83%	11.47%

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
INPLAY OIL CP	0	0	0	2	4.00
Arc Resources	0	0	3	1	3.25

Institutional and Insider Ownership

2.5% of Arc Resources shares are owned by institutional investors. 0.3% of Arc Resources shares are owned 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 INPLAY OIL CP on 12 of the 16 factors compared between the two stocks.

About INPLAY OIL CP

InPlay Oil Corp. engages in the acquisition, exploration, development, and production of petroleum and natural gas properties in Canada. The company produces and sells crude oil, natural gas, and natural gas liquids. It focuses on light oil asset base located in West Central, Alberta. InPlay Oil Corp. 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.