Eca Marcellus Trust I (NYSE:ECT) and Lonestar Resources US (NASDAQ:LONE) are both small-cap oils/energy companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, dividends, risk, profitability and valuation.

Volatility & Risk

Eca Marcellus Trust I has a beta of 1.86, meaning that its stock price is 86% more volatile than the S&P 500. Comparatively, Lonestar Resources US has a beta of 2.44, meaning that its stock price is 144% more volatile than the S&P 500.

Insider and Institutional Ownership

3.2% of Eca Marcellus Trust I shares are held by institutional investors. Comparatively, 57.9% of Lonestar Resources US shares are held by institutional investors. 2.9% of Lonestar Resources US shares are held 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.

Dividends

Eca Marcellus Trust I pays an annual dividend of $0.26 per share and has a dividend yield of 15.1%. Lonestar Resources US does not pay a dividend.

Profitability

This table compares Eca Marcellus Trust I and Lonestar Resources US’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Eca Marcellus Trust I 83.04% 12.35% 12.00%
Lonestar Resources US -9.68% 1.78% 0.45%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Eca Marcellus Trust I and Lonestar Resources US, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eca Marcellus Trust I 0 0 0 0 N/A
Lonestar Resources US 0 0 5 0 3.00

Lonestar Resources US has a consensus price target of $10.00, suggesting a potential upside of 281.68%. Given Lonestar Resources US’s higher possible upside, analysts plainly believe Lonestar Resources US is more favorable than Eca Marcellus Trust I.

Valuation & Earnings

This table compares Eca Marcellus Trust I and Lonestar Resources US’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Eca Marcellus Trust I $6.89 million 4.39 $5.75 million N/A N/A
Lonestar Resources US $201.17 million 0.32 $19.35 million ($0.07) -37.43

Lonestar Resources US has higher revenue and earnings than Eca Marcellus Trust I.

Summary

Lonestar Resources US beats Eca Marcellus Trust I on 7 of the 12 factors compared between the two stocks.

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.

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.

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