Reviewing Permex Petroleum (OTCMKTS:OILCF) & Arc Resources (OTCMKTS:AETUF)

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

Profitability

This table compares Permex Petroleum and Arc Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Permex Petroleum	-1,009.96%	-175.72%	-48.49%
Arc Resources	30.77%	18.83%	11.47%

Risk and Volatility

Permex Petroleum has a beta of 2.69, meaning that its stock price is 169% more volatile than the S&P 500. Comparatively, Arc Resources has a beta of 0.37, meaning that its stock price is 63% less volatile than the S&P 500.

Institutional & Insider Ownership

9.5% of Permex Petroleum 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 company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Permex Petroleum and Arc Resources”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Permex Petroleum	$120,000.00	16.91	-$3.99 million	($10.29)	-0.36
Arc Resources	$2.98 billion	3.81	$820.37 million	$1.82	10.70

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Permex Petroleum and Arc Resources, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Permex Petroleum	0	0	0	0	0.00
Arc Resources	0	0	3	1	3.25

Summary

Arc Resources beats Permex Petroleum on 11 of the 14 factors compared between the two stocks.

About Permex Petroleum

Permex Petroleum Corporation, a junior oil and gas company, engages in the acquisition, development, and production of oil and gas properties in the United States. The company holds interests in the Pittcock North property, Pittcock South property, Windy Jones property, and Mary Bullard property located in Stonewall County. It also holds interests in the West Henshaw property located in Eddy County, New Mexico; Oxy Yates property located in Eddy County; and Breedlove B Clearfork property located in Martin Country, Texas. In addition, the company has royalty interests in the Permian Basin of West Texas and southeast New Mexico. Permex Petroleum Corporation was incorporated in 2017 and is headquartered in Dallas, Texas.

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.