Contrasting ECA Marcellus Trust I (ECT) & Transportadora De Gas Sa Ord B (TGS)

Transportadora De Gas Sa Ord B (NYSE: TGS) and ECA Marcellus Trust I (NYSE:ECT) are both oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, profitability, earnings, institutional ownership, risk and analyst recommendations.

Earnings & Valuation

This table compares Transportadora De Gas Sa Ord B and ECA Marcellus Trust I’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Transportadora De Gas Sa Ord B $501.12 million 7.29 $63.00 million $0.91 25.27
ECA Marcellus Trust I $4.75 million 8.15 $3.47 million $0.33 6.67

Transportadora De Gas Sa Ord B has higher revenue and earnings than ECA Marcellus Trust I. ECA Marcellus Trust I is trading at a lower price-to-earnings ratio than Transportadora De Gas Sa Ord B, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Transportadora De Gas Sa Ord B and ECA Marcellus Trust I’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Transportadora De Gas Sa Ord B 21.43% 66.26% 22.54%
ECA Marcellus Trust I 84.37% 10.85% 10.57%

Analyst Ratings

This is a summary of current ratings and target prices for Transportadora De Gas Sa Ord B and ECA Marcellus Trust I, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Transportadora De Gas Sa Ord B 1 0 1 0 2.00
ECA Marcellus Trust I 0 0 0 0 N/A

Transportadora De Gas Sa Ord B presently has a consensus price target of $25.00, indicating a potential upside of 8.70%. Given Transportadora De Gas Sa Ord B’s higher probable upside, research analysts plainly believe Transportadora De Gas Sa Ord B is more favorable than ECA Marcellus Trust I.

Institutional & Insider Ownership

8.9% of Transportadora De Gas Sa Ord B shares are held by institutional investors. Comparatively, 3.0% of ECA Marcellus Trust I shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Transportadora De Gas Sa Ord B has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500. Comparatively, ECA Marcellus Trust I has a beta of 1.46, meaning that its share price is 46% more volatile than the S&P 500.

Dividends

ECA Marcellus Trust I pays an annual dividend of $0.29 per share and has a dividend yield of 13.2%. Transportadora De Gas Sa Ord B does not pay a dividend. ECA Marcellus Trust I pays out 87.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Transportadora De Gas Sa Ord B beats ECA Marcellus Trust I on 10 of the 14 factors compared between the two stocks.

About Transportadora De Gas Sa Ord B

Transportadora de Gas del Sur S.A. is engaged in the transportation of natural gas and production and commercialization of natural gas liquids (Liquids). The Company operates through four segments: Natural Gas Transportation Services, Liquids Production and Commercialization, Other Services and Telecommunications. The Company’s pipeline system connects gas fields in southern and western Argentina with gas distributors and industries in those areas and in the greater Buenos Aires area. It also provides midstream services, which consist of gas treatment, removal of impurities from the natural gas stream, gas compression, wellhead gas gathering and pipeline construction, operation and maintenance services. The Company transports gas through approximately 5,675 miles of pipeline, of which it owns 4,745 miles. It operates the remaining 930 miles, which are owned by the Gas Trusts.

About ECA Marcellus Trust I

ECA Marcellus Trust I (the Trust) is a statutory trust. The Trust is formed by Energy Corporation of America (ECA) to own royalty interests in natural gas properties owned and operated by ECA in the Marcellus Shale formation in Greene County, Pennsylvania. The Trust does not conduct any operations or activities. The Trust’s purpose is, in general, to hold the Royalty Interests to distribute to the Trust unitholders cash and to perform certain administrative functions in respect of the Royalty Interests and the Trust units. The Trust owns royalty interests in over 10 Producing Wells (the Producing Wells), and royalty interests in over 50 horizontal natural gas development wells to be drilled to the Marcellus Shale formation (the PUD Wells) within the area of mutual interest (AMI), in which ECA holds approximately 9,300 acres, of which it owned all of the working interests, in Greene County, Pennsylvania. It owns Royalty Interests in over 40 development wells that are in production.

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