Sable Offshore (NYSE:SOC) and ARC Resources (OTCMKTS:AETUF) Financial Review

ARC Resources (OTCMKTS:AETUF) and Sable Offshore (NYSE:SOC) are both oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, risk, institutional ownership and earnings.

Profitability

This table compares ARC Resources and Sable Offshore’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ARC Resources	26.33%	16.69%	10.09%
Sable Offshore	N/A	-372.38%	-47.40%

Risk & Volatility

ARC Resources has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500. Comparatively, Sable Offshore has a beta of 0.32, suggesting that its stock price is 68% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for ARC Resources and Sable Offshore, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ARC Resources	0	0	1	2	3.67
Sable Offshore	1	0	4	0	2.60

ARC Resources presently has a consensus price target of $25.00, indicating a potential upside of 38.50%. Sable Offshore has a consensus price target of $25.00, indicating a potential upside of 21.07%. Given ARC Resources’ stronger consensus rating and higher probable upside, analysts clearly believe ARC Resources is more favorable than Sable Offshore.

Earnings and Valuation

This table compares ARC Resources and Sable Offshore”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ARC Resources	$4.19 billion	2.55	$1.18 billion	$1.54	11.72
Sable Offshore	N/A	N/A	-$32.18 million	N/A	N/A

ARC Resources has higher revenue and earnings than Sable Offshore.

Insider and Institutional Ownership

2.5% of ARC Resources shares are held by institutional investors. Comparatively, 26.2% of Sable Offshore shares are held by institutional investors. 0.3% of ARC Resources shares are held by company insiders. Comparatively, 14.3% of Sable Offshore shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

ARC Resources beats Sable Offshore on 9 of the 12 factors compared between the two stocks.

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.

About Sable Offshore

Sable Offshore Corp. engages in the oil and gas exploration and development activities in the United States. The company operates through three platforms located in federal waters offshore California. It owns and operates 16 federal leases across approximately 76,000 acres and subsea pipelines, which transport crude oil, natural gas, and produced water from the platforms to the onshore processing facilities. The company was formerly known as Flame Acquisition Corp. and changed its name to Sable Offshore Corp. in February 2024. Sable Offshore Corp. was incorporated in 2020 and is based in Houston, Texas.