Sable Offshore (NYSE:SOC) versus ARC Resources (OTCMKTS:AETUF) Financial Comparison

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

Institutional and Insider 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 insiders. Comparatively, 14.3% of Sable Offshore shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and price targets for ARC Resources and Sable Offshore, as reported by MarketBeat.

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

Volatility & Risk

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

Earnings and Valuation

This table compares ARC Resources and Sable Offshore”s gross 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.

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%

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.