Critical Review: Eca Marcellus Trust I (ECT) & Denbury Resources (DNR)
Eca Marcellus Trust I (NYSE:ECT) and Denbury Resources (NYSE:DNR) are both small-cap oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, dividends, risk, analyst recommendations and institutional ownership.
Insider & Institutional Ownership
2.8% of Eca Marcellus Trust I shares are owned by institutional investors. Comparatively, 93.4% of Denbury Resources shares are owned by institutional investors. 1.1% of Denbury Resources shares are owned 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.
This is a breakdown of recent recommendations and price targets for Eca Marcellus Trust I and Denbury Resources, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Eca Marcellus Trust I||0||0||0||0||N/A|
Denbury Resources has a consensus target price of $5.02, suggesting a potential upside of 123.96%. Given Denbury Resources’ higher possible upside, analysts clearly believe Denbury Resources is more favorable than Eca Marcellus Trust I.
Volatility and Risk
Eca Marcellus Trust I has a beta of 1.43, suggesting that its stock price is 43% more volatile than the S&P 500. Comparatively, Denbury Resources has a beta of 3.74, suggesting that its stock price is 274% more volatile than the S&P 500.
Eca Marcellus Trust I pays an annual dividend of $0.26 per share and has a dividend yield of 13.0%. Denbury Resources does not pay a dividend.
This table compares Eca Marcellus Trust I and Denbury Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Eca Marcellus Trust I||80.55%||9.57%||9.35%|
Valuation and Earnings
This table compares Eca Marcellus Trust I and Denbury Resources’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Eca Marcellus Trust I||$6.88 million||5.12||$5.73 million||N/A||N/A|
|Denbury Resources||$1.13 billion||0.91||$163.15 million||$0.14||16.00|
Denbury Resources has higher revenue and earnings than Eca Marcellus Trust I.
Denbury Resources beats Eca Marcellus Trust I on 9 of the 13 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.
Denbury Resources Company Profile
Denbury Resources Inc. operates as an independent oil and natural gas company in the United States. It holds interests in various oil and natural gas properties located in Mississippi, Texas, Louisiana, and Alabama in the Gulf Coast region; and in Montana, North Dakota, and Wyoming in the Rocky Mountain region. As of December 31, 2017, the company had 259.7 million barrels of oil equivalent of estimated proved oil and natural gas reserves. Denbury Resources Inc. was founded in 1951 and is headquartered in Plano, Texas.
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