American Energy Group (OTCMKTS:AEGG) and Encana (NYSE:ECA) are both oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, dividends, earnings, profitability and institutional ownership.
Volatility and Risk
American Energy Group has a beta of -0.14, suggesting that its share price is 114% less volatile than the S&P 500. Comparatively, Encana has a beta of 2.02, suggesting that its share price is 102% more volatile than the S&P 500.
This table compares American Energy Group and Encana’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|American Energy Group||N/A||N/A||-2,778.85%|
Encana pays an annual dividend of $0.08 per share and has a dividend yield of 1.8%. American Energy Group does not pay a dividend. Encana pays out 9.3% of its earnings in the form of a dividend.
This is a breakdown of recent ratings and target prices for American Energy Group and Encana, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|American Energy Group||0||0||0||0||N/A|
Encana has a consensus price target of $11.11, suggesting a potential upside of 148.91%. Given Encana’s higher possible upside, analysts clearly believe Encana is more favorable than American Energy Group.
Valuation & Earnings
This table compares American Energy Group and Encana’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|American Energy Group||N/A||N/A||-$1.26 million||N/A||N/A|
|Encana||$5.94 billion||1.08||$1.07 billion||$0.86||5.19|
Encana has higher revenue and earnings than American Energy Group.
Institutional & Insider Ownership
70.2% of Encana shares are owned by institutional investors. 0.1% of Encana shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Encana beats American Energy Group on 11 of the 12 factors compared between the two stocks.
American Energy Group Company Profile
The American Energy Group, Ltd. operates as an energy resource royalty company. The company holds 18% interest in the Yasin (2768-7) Block in Pakistan; and interests in two oil and gas leases in Galveston County, Texas. It also holds a 2.5% working interest in the Sanjawi Block No. 3068-2, Zone II that covers an area of 2,258 square kilometer located in Baluchistan Province; and Zamzama North Block No. 2667-8, Zone III that covers an area of 1,229 square kilometer located in Sindh Province. The company was formerly known as Belize-American Corp. Internationale and changed its name to The American Energy Group, Ltd. in November 1994. The American Energy Group, Ltd. was incorporated in 1987 and is headquartered in Westport, Connecticut.
Encana Company Profile
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.
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