OVV vs. ARX, TOU, MEG, CPG, SCR, PSK, WCP, ERF, PPL, and ALA
Should you be buying Ovintiv stock or one of its competitors? The main competitors of Ovintiv include ARC Resources (ARX), Tourmaline Oil (TOU), MEG Energy (MEG), Crescent Point Energy (CPG), Strathcona Resources (SCR), PrairieSky Royalty (PSK), Whitecap Resources (WCP), Enerplus (ERF), Pembina Pipeline (PPL), and AltaGas (ALA). These companies are all part of the "energy" sector.
ARC Resources (TSE:ARX) and Ovintiv (TSE:OVV) are both large-cap energy companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, valuation, earnings, profitability, media sentiment and community ranking.
ARC Resources presently has a consensus target price of C$29.77, suggesting a potential upside of 16.70%. Ovintiv has a consensus target price of C$58.50, suggesting a potential downside of 14.32%. Given Ovintiv's stronger consensus rating and higher possible upside, equities analysts clearly believe ARC Resources is more favorable than Ovintiv.
ARC Resources pays an annual dividend of C$0.68 per share and has a dividend yield of 2.7%. Ovintiv pays an annual dividend of C$1.63 per share and has a dividend yield of 2.4%. ARC Resources pays out 26.1% of its earnings in the form of a dividend. Ovintiv pays out 15.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
38.8% of ARC Resources shares are held by institutional investors. Comparatively, 82.7% of Ovintiv shares are held by institutional investors. 0.4% of ARC Resources shares are held by company insiders. Comparatively, 0.5% of Ovintiv shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
ARC Resources has a net margin of 28.23% compared to ARC Resources' net margin of 19.56%. ARC Resources' return on equity of 23.09% beat Ovintiv's return on equity.
In the previous week, Ovintiv had 8 more articles in the media than ARC Resources. MarketBeat recorded 19 mentions for Ovintiv and 11 mentions for ARC Resources. ARC Resources' average media sentiment score of 0.49 beat Ovintiv's score of 0.27 indicating that Ovintiv is being referred to more favorably in the news media.
Ovintiv has higher revenue and earnings than ARC Resources. Ovintiv is trading at a lower price-to-earnings ratio than ARC Resources, indicating that it is currently the more affordable of the two stocks.
ARC Resources received 584 more outperform votes than Ovintiv when rated by MarketBeat users. Likewise, 65.82% of users gave ARC Resources an outperform vote while only 58.06% of users gave Ovintiv an outperform vote.
ARC Resources has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500. Comparatively, Ovintiv has a beta of 2.69, suggesting that its share price is 169% more volatile than the S&P 500.
Summary
ARC Resources and Ovintiv tied by winning 10 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding OVV and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of TSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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