ECA Marcellus Trust I (NYSE: ECT) is one of 228 publicly-traded companies in the “Oil & Gas Exploration and Production” industry, but how does it contrast to its competitors? We will compare ECA Marcellus Trust I to similar companies based on the strength of its earnings, profitability, institutional ownership, analyst recommendations, dividends, valuation and risk.

Volatility & Risk

ECA Marcellus Trust I has a beta of 1.5, suggesting that its share price is 50% more volatile than the S&P 500. Comparatively, ECA Marcellus Trust I’s competitors have a beta of 1.42, suggesting that their average share price is 42% more volatile than the S&P 500.

Valuation and Earnings

This table compares ECA Marcellus Trust I and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
ECA Marcellus Trust I $4.75 million $3.47 million 6.67
ECA Marcellus Trust I Competitors $1.86 billion -$439.03 million -29.30

ECA Marcellus Trust I’s competitors have higher revenue, but lower earnings than ECA Marcellus Trust I. ECA Marcellus Trust I is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a breakdown of recent ratings for ECA Marcellus Trust I and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ECA Marcellus Trust I 0 0 0 0 N/A
ECA Marcellus Trust I Competitors 1464 7645 12312 259 2.52

As a group, “Oil & Gas Exploration and Production” companies have a potential upside of 37.84%. Given ECA Marcellus Trust I’s competitors higher possible upside, analysts clearly believe ECA Marcellus Trust I has less favorable growth aspects than its competitors.

Profitability

This table compares ECA Marcellus Trust I and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ECA Marcellus Trust I 87.31% 13.06% 12.68%
ECA Marcellus Trust I Competitors -449.99% 20.83% 6.33%

Dividends

ECA Marcellus Trust I pays an annual dividend of $0.29 per share and has a dividend yield of 13.2%. ECA Marcellus Trust I pays out 87.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Oil & Gas Exploration and Production” companies pay a dividend yield of 1.6% and pay out 292.4% of their earnings in the form of a dividend. ECA Marcellus Trust I is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

2.9% of ECA Marcellus Trust I shares are owned by institutional investors. Comparatively, 60.8% of shares of all “Oil & Gas Exploration and Production” companies are owned by institutional investors. 12.2% of shares of all “Oil & Gas Exploration and Production” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

ECA Marcellus Trust I beats its competitors on 7 of the 12 factors compared.

ECA Marcellus Trust I Company Profile

ECA Marcellus Trust I (the Trust) is a statutory trust. The Trust is formed by Energy Corporation of America (ECA) to own royalty interests in natural gas properties owned and operated by ECA in the Marcellus Shale formation in Greene County, Pennsylvania. The Trust does not conduct any operations or activities. The Trust’s purpose is, in general, to hold the Royalty Interests to distribute to the Trust unitholders cash and to perform certain administrative functions in respect of the Royalty Interests and the Trust units. The Trust owns royalty interests in over 10 Producing Wells (the Producing Wells), and royalty interests in over 50 horizontal natural gas development wells to be drilled to the Marcellus Shale formation (the PUD Wells) within the area of mutual interest (AMI), in which ECA holds approximately 9,300 acres, of which it owned all of the working interests, in Greene County, Pennsylvania. It owns Royalty Interests in over 40 development wells that are in production.

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