ECA Marcellus Trust I (OTCMKTS:ECT) & Comstock Resources (NYSE:CRK) Critical Contrast

ECA Marcellus Trust I (OTCMKTS:ECT) and Comstock Resources (NYSE:CRK) are both oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, profitability, institutional ownership and valuation.

Volatility and Risk

ECA Marcellus Trust I has a beta of 2, meaning that its share price is 100% more volatile than the S&P 500. Comparatively, Comstock Resources has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500.

Insider & Institutional Ownership

2.0% of ECA Marcellus Trust I shares are held by institutional investors. Comparatively, 36.1% of Comstock Resources shares are held by institutional investors. 1.5% of Comstock Resources shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares ECA Marcellus Trust I and Comstock Resources’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ECA Marcellus Trust I	$4.15 million	1.70	$2.90 million	N/A	N/A
Comstock Resources	$1.41 billion	2.10	$211.12 million	$0.22	46.05

Comstock Resources has higher revenue and earnings than ECA Marcellus Trust I.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ECA Marcellus Trust I	46.53%	4.37%	4.32%
Comstock Resources	4.27%	1.25%	0.48%

Analyst Ratings

This is a breakdown of recent recommendations for ECA Marcellus Trust I and Comstock Resources, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ECA Marcellus Trust I	0	0	0	0	N/A
Comstock Resources	2	4	2	0	2.00

Comstock Resources has a consensus target price of $9.75, indicating a potential downside of 4.13%. Given Comstock Resources’ higher possible upside, analysts plainly believe Comstock Resources is more favorable than ECA Marcellus Trust I.

Summary

Comstock Resources beats ECA Marcellus Trust I on 8 of the 12 factors compared between the two stocks.

About ECA Marcellus Trust I

ECA Marcellus Trust I is a statutory trust. It owns royalty interest in producing wells and development wells. It also acquires horizontal natural gas development wells to be drilled to the Marcellus Shale formation. The company was founded in March 2010 and is headquartered in Houston, TX.

About Comstock Resources

Comstock Resources, Inc., an independent energy company, engages in the acquisition, exploration, development, and production of natural gas and oil properties in the United States. Its assets are located in the Haynesville and Bossier shales located in North Louisiana and East Texas. The company was incorporated in 1919 and is headquartered in Frisco, Texas.