Encana (NYSE:ECA) and TransCoastal (OTCMKTS:TCEC) are both oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, earnings and valuation.
This table compares Encana and TransCoastal’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Encana and TransCoastal’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Encana||$5.94 billion||1.21||$1.07 billion||$0.86||5.83|
Encana has higher revenue and earnings than TransCoastal.
Encana pays an annual dividend of $0.08 per share and has a dividend yield of 1.6%. TransCoastal does not pay a dividend. Encana pays out 9.3% of its earnings in the form of a dividend.
This is a summary of recent ratings for Encana and TransCoastal, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Encana presently has a consensus target price of $11.11, suggesting a potential upside of 121.84%. Given Encana’s higher possible upside, analysts clearly believe Encana is more favorable than TransCoastal.
Volatility & Risk
Encana has a beta of 2.02, indicating that its stock price is 102% more volatile than the S&P 500. Comparatively, TransCoastal has a beta of -0.76, indicating that its stock price is 176% less volatile than the S&P 500.
Institutional & Insider Ownership
70.2% of Encana shares are held by institutional investors. 0.1% of Encana shares are held by insiders. Comparatively, 67.1% of TransCoastal shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Encana beats TransCoastal on 9 of the 11 factors compared between the two stocks.
Encana Corporation, together with its subsidiaries, engages in the exploration, development, production, and marketing of natural gas, oil, and natural gas liquids. It holds interests in various assets, including the Montney in northeast British Columbia and northwest Alberta; Duvernay in west central Alberta; and other upstream operations comprising Wheatland in southern Alberta, Horn River in northeast British Columbia, and Deep Panuke located in offshore Nova Scotia in Canada. The company also owns interests in assets consisting of the Eagle Ford in south Texas and Permian in west Texas. It primarily markets its products to refiners, local distributing companies, energy marketing companies, and electronic exchanges. The company was founded in 1971 and is based in Calgary, Canada.
TransCoastal Corporation, an energy development company, engages in the acquisition, exploration, development, and production of oil and natural gas properties. It holds interests in approximately 100 acquired or divested wells; and 200 undeveloped locations covering an area of approximately 6000 acres of leased oil and gas property located primarily in the panhandle area of west Texas. The company was founded in 1998 and is based in Dallas, Texas.
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