ARC Resources (ARX) Competitors

Suncor Energy (TSE:SU) and ARC Resources (TSE:ARX) are both large-cap energy companies, but which is the better investment? We will compare the two companies based on the strength of their risk, community ranking, institutional ownership, profitability, earnings, dividends, media sentiment, valuation and analyst recommendations.

Does the MarketBeat Community believe in SU or ARX?

Suncor Energy received 118 more outperform votes than ARC Resources when rated by MarketBeat users. However, 64.78% of users gave ARC Resources an outperform vote while only 59.33% of users gave Suncor Energy an outperform vote.

Company	Underperform	Outperform
Suncor Energy	Outperform Votes 747 59.33%	Underperform Votes 512 40.67%
ARC Resources	Outperform Votes 629 64.78%	Underperform Votes 342 35.22%

Does the media prefer SU or ARX?

In the previous week, ARC Resources had 1 more articles in the media than Suncor Energy. MarketBeat recorded 1 mentions for ARC Resources and 0 mentions for Suncor Energy. ARC Resources' average media sentiment score of 0.90 beat Suncor Energy's score of 0.13 indicating that ARC Resources is being referred to more favorably in the news media.

Company	Overall Sentiment
Suncor Energy	Neutral
ARC Resources	Positive

Do institutionals and insiders believe in SU or ARX?

73.1% of Suncor Energy shares are held by institutional investors. Comparatively, 39.0% of ARC Resources shares are held by institutional investors. 0.0% of Suncor Energy shares are held by company insiders. Comparatively, 0.4% of ARC Resources shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Do analysts prefer SU or ARX?

Suncor Energy currently has a consensus target price of C$62.58, suggesting a potential upside of 27.63%. ARC Resources has a consensus target price of C$32.32, suggesting a potential upside of 9.37%. Given Suncor Energy's higher possible upside, analysts plainly believe Suncor Energy is more favorable than ARC Resources.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Suncor Energy	0 Sell rating(s)	5 Hold rating(s)	7 Buy rating(s)	2 Strong Buy rating(s)	2.79
ARC Resources	0 Sell rating(s)	0 Hold rating(s)	5 Buy rating(s)	1 Strong Buy rating(s)	3.17

Is SU or ARX more profitable?

ARC Resources has a net margin of 20.95% compared to Suncor Energy's net margin of 15.15%. Suncor Energy's return on equity of 18.10% beat ARC Resources' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Suncor Energy	15.15%	18.10%	7.01%
ARC Resources	20.95%	14.60%	7.88%

Which has more volatility & risk, SU or ARX?

Suncor Energy has a beta of 1.47, meaning that its stock price is 47% more volatile than the S&P 500. Comparatively, ARC Resources has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500.

Which has preferable valuation & earnings, SU or ARX?

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

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Suncor Energy	C$52.29B	1.18	C$7.92B	C$6.33	7.74
ARC Resources	C$5.31B	3.28	C$1.11B	C$1.90	15.59

Is SU or ARX a better dividend stock?

Suncor Energy pays an annual dividend of C$2.18 per share and has a dividend yield of 4.4%. ARC Resources pays an annual dividend of C$0.68 per share and has a dividend yield of 2.3%. Suncor Energy pays out 34.4% of its earnings in the form of a dividend. ARC Resources pays out 35.9% 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. Suncor Energy is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Suncor Energy beats ARC Resources on 12 of the 21 factors compared between the two stocks.