Critical Analysis: ARC Resources (OTCMKTS:AETUF) vs. Trillion Energy International (OTCMKTS:TCFF)

Trillion Energy International (OTCMKTS:TCFF) and ARC Resources (OTCMKTS:AETUF) are both oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, risk, dividends and profitability.

Insider and Institutional Ownership

0.0% of Trillion Energy International shares are held by institutional investors. Comparatively, 2.5% of ARC Resources shares are held by institutional investors. 11.8% of Trillion Energy International shares are held by insiders. Comparatively, 0.3% of ARC Resources shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for Trillion Energy International and ARC Resources, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trillion Energy International	0	0	0	0	0.00
ARC Resources	0	0	1	2	3.67

ARC Resources has a consensus price target of $25.00, indicating a potential upside of 43.02%. Given ARC Resources’ stronger consensus rating and higher probable upside, analysts clearly believe ARC Resources is more favorable than Trillion Energy International.

Profitability

This table compares Trillion Energy International and ARC Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Trillion Energy International	N/A	N/A	N/A
ARC Resources	26.33%	16.60%	10.02%

Volatility & Risk

Trillion Energy International has a beta of 3.51, indicating that its stock price is 251% more volatile than the S&P 500. Comparatively, ARC Resources has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500.

Valuation and Earnings

This table compares Trillion Energy International 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
Trillion Energy International	N/A	N/A	N/A	N/A	N/A
ARC Resources	$4.19 billion	2.46	$1.18 billion	$1.54	11.35

ARC Resources has higher revenue and earnings than Trillion Energy International.

Summary

ARC Resources beats Trillion Energy International on 9 of the 11 factors compared between the two stocks.

About Trillion Energy International

Trillion Energy International Inc., together with its subsidiaries, operates as an oil and gas exploration, and production company in Bulgaria and Turkey. It owns Cendere oil and South Akcakoca Sub-Basin gas producing assets in Turkey; and a coal bed methane exploration license in Bulgaria, as well as Derecik oil exploration property covering an area of 42,833 hectares located in the south west Turkey. The company was formerly known as Park Place Energy Inc. and changed its name to Trillion Energy International Inc. in April 2019. Trillion Energy International Inc. was founded in 2006 and is headquartered in Ankara, Turkey.

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.