AR vs. EC: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AR and EC, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
EC’s market capitalization of 18.85 billion USD is significantly greater than AR’s 11.57 billion USD, highlighting its more substantial market valuation.
AR’s beta of 0.69 points to significantly higher volatility compared to EC (beta: 0.32), suggesting AR has greater potential for both gains and losses relative to market movements.
EC is an American Depositary Receipt (ADR), allowing U.S. investors direct exposure to its non-U.S. operations. AR, on the other hand, is a domestic entity.
| Symbol | AR | EC |
|---|---|---|
| Company Name | Antero Resources Corporation | Ecopetrol S.A. |
| Country | US | CO |
| Sector | Energy | Energy |
| Industry | Oil & Gas Exploration & Production | Oil & Gas Integrated |
| CEO | Paul M. Rady | Ricardo Roa Barragan |
| Price | 37.26 USD | 9.17 USD |
| Market Cap | 11.57 billion USD | 18.85 billion USD |
| Beta | 0.69 | 0.32 |
| Exchange | NYSE | NYSE |
| IPO Date | October 10, 2013 | September 18, 2008 |
| ADR | No | Yes |
Historical Performance
This chart compares the performance of AR and EC by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
AR
0.41%
Oil & Gas Exploration & Production Industry
- Max
- 40.04%
- Q3
- 19.86%
- Median
- 9.16%
- Q1
- 0.95%
- Min
- -16.30%
AR’s Return on Equity of 0.41% is in the lower quartile for the Oil & Gas Exploration & Production industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.
EC
17.23%
Oil & Gas Integrated Industry
- Max
- 20.46%
- Q3
- 15.43%
- Median
- 12.48%
- Q1
- 8.43%
- Min
- -1.92%
In the upper quartile for the Oil & Gas Integrated industry, EC’s Return on Equity of 17.23% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Return on Invested Capital
AR
2.48%
Oil & Gas Exploration & Production Industry
- Max
- 26.92%
- Q3
- 11.67%
- Median
- 6.24%
- Q1
- 1.35%
- Min
- -12.56%
AR’s Return on Invested Capital of 2.48% is in line with the norm for the Oil & Gas Exploration & Production industry, reflecting a standard level of efficiency in generating profits from its capital base.
EC
10.62%
Oil & Gas Integrated Industry
- Max
- 12.91%
- Q3
- 9.65%
- Median
- 7.06%
- Q1
- 3.79%
- Min
- -0.29%
In the upper quartile for the Oil & Gas Integrated industry, EC’s Return on Invested Capital of 10.62% signifies a highly effective use of its capital to generate profits when compared to its peers.
Net Profit Margin
AR
0.63%
Oil & Gas Exploration & Production Industry
- Max
- 52.19%
- Q3
- 25.60%
- Median
- 13.47%
- Q1
- 2.13%
- Min
- -32.99%
Falling into the lower quartile for the Oil & Gas Exploration & Production industry, AR’s Net Profit Margin of 0.63% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.
EC
10.53%
Oil & Gas Integrated Industry
- Max
- 11.33%
- Q3
- 9.89%
- Median
- 8.06%
- Q1
- 4.82%
- Min
- -0.64%
A Net Profit Margin of 10.53% places EC in the upper quartile for the Oil & Gas Integrated industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin
AR
4.47%
Oil & Gas Exploration & Production Industry
- Max
- 52.94%
- Q3
- 36.35%
- Median
- 24.23%
- Q1
- 13.05%
- Min
- -20.00%
AR’s Operating Profit Margin of 4.47% is in the lower quartile for the Oil & Gas Exploration & Production industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.
EC
27.11%
Oil & Gas Integrated Industry
- Max
- 30.12%
- Q3
- 21.81%
- Median
- 9.73%
- Q1
- 7.69%
- Min
- 4.28%
An Operating Profit Margin of 27.11% places EC in the upper quartile for the Oil & Gas Integrated industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | AR | EC |
|---|---|---|
| Return on Equity (TTM) | 0.41% | 17.23% |
| Return on Assets (TTM) | 0.22% | 4.71% |
| Return on Invested Capital (TTM) | 2.48% | 10.62% |
| Net Profit Margin (TTM) | 0.63% | 10.53% |
| Operating Profit Margin (TTM) | 4.47% | 27.11% |
| Gross Profit Margin (TTM) | 111.19% | 36.92% |
Financial Strength
Current Ratio
AR
0.39
Oil & Gas Exploration & Production Industry
- Max
- 1.96
- Q3
- 1.23
- Median
- 0.89
- Q1
- 0.65
- Min
- 0.27
AR’s Current Ratio of 0.39 falls into the lower quartile for the Oil & Gas Exploration & Production industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
EC
0.41
Oil & Gas Integrated Industry
- Max
- 1.54
- Q3
- 1.42
- Median
- 1.24
- Q1
- 0.93
- Min
- 0.41
EC’s Current Ratio of 0.41 falls into the lower quartile for the Oil & Gas Integrated industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio
AR
0.53
Oil & Gas Exploration & Production Industry
- Max
- 1.10
- Q3
- 0.67
- Median
- 0.44
- Q1
- 0.28
- Min
- 0.00
AR’s Debt-to-Equity Ratio of 0.53 is typical for the Oil & Gas Exploration & Production industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
EC
1.10
Oil & Gas Integrated Industry
- Max
- 1.22
- Q3
- 0.83
- Median
- 0.46
- Q1
- 0.26
- Min
- 0.14
EC’s leverage is in the upper quartile of the Oil & Gas Integrated industry, with a Debt-to-Equity Ratio of 1.10. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
Interest Coverage Ratio
AR
2.35
Oil & Gas Exploration & Production Industry
- Max
- 20.85
- Q3
- 11.06
- Median
- 5.67
- Q1
- 2.08
- Min
- -6.70
AR’s Interest Coverage Ratio of 2.35 is positioned comfortably within the norm for the Oil & Gas Exploration & Production industry, indicating a standard and healthy capacity to cover its interest payments.
EC
17.30
Oil & Gas Integrated Industry
- Max
- 33.34
- Q3
- 16.73
- Median
- 9.99
- Q1
- 4.43
- Min
- 1.03
EC’s Interest Coverage Ratio of 17.30 is in the upper quartile for the Oil & Gas Integrated industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | AR | EC |
|---|---|---|
| Current Ratio (TTM) | 0.39 | 0.41 |
| Quick Ratio (TTM) | 0.39 | 0.16 |
| Debt-to-Equity Ratio (TTM) | 0.53 | 1.10 |
| Debt-to-Asset Ratio (TTM) | 0.29 | 0.39 |
| Net Debt-to-EBITDA Ratio (TTM) | 3.52 | 2.39 |
| Interest Coverage Ratio (TTM) | 2.35 | 17.30 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AR and EC. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
AR
0.00%
Oil & Gas Exploration & Production Industry
- Max
- 19.30%
- Q3
- 6.00%
- Median
- 3.36%
- Q1
- 0.00%
- Min
- 0.00%
AR currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
EC
17.01%
Oil & Gas Integrated Industry
- Max
- 18.27%
- Q3
- 6.79%
- Median
- 4.63%
- Q1
- 3.87%
- Min
- 0.00%
With a Dividend Yield of 17.01%, EC offers a more attractive income stream than most of its peers in the Oil & Gas Integrated industry, signaling a strong commitment to shareholder returns.
Dividend Payout Ratio
AR
324.36%
Oil & Gas Exploration & Production Industry
- Max
- 899.71%
- Q3
- 55.01%
- Median
- 33.88%
- Q1
- 12.33%
- Min
- 0.00%
AR’s Dividend Payout Ratio of 324.36% is above 100%. This means the company is paying out more in dividends than it earned, a practice that is often unsustainable and could indicate a risk to future dividend stability.
EC
110.78%
Oil & Gas Integrated Industry
- Max
- 470.85%
- Q3
- 105.45%
- Median
- 60.50%
- Q1
- 47.51%
- Min
- 0.00%
EC’s Dividend Payout Ratio of 110.78% is above 100%. This means the company is paying out more in dividends than it earned, a practice that is often unsustainable and could indicate a risk to future dividend stability.
Dividend at a Glance
| Symbol | AR | EC |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 17.01% |
| Dividend Payout Ratio (TTM) | 324.36% | 110.78% |
Valuation
Price-to-Earnings Ratio
AR
400.65
Oil & Gas Exploration & Production Industry
- Max
- 28.71
- Q3
- 16.76
- Median
- 10.56
- Q1
- 6.59
- Min
- 2.35
At 400.65, AR’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Oil & Gas Exploration & Production industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
EC
5.37
Oil & Gas Integrated Industry
- Max
- 16.54
- Q3
- 15.68
- Median
- 11.70
- Q1
- 10.25
- Min
- 5.34
In the lower quartile for the Oil & Gas Integrated industry, EC’s P/E Ratio of 5.37 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
Forward P/E to Growth Ratio
AR
120.06
Oil & Gas Exploration & Production Industry
- Max
- 2.32
- Q3
- 1.37
- Median
- 0.88
- Q1
- 0.50
- Min
- 0.08
The Forward PEG Ratio is often not a primary valuation metric in the Oil & Gas Exploration & Production industry.
EC
-1.12
Oil & Gas Integrated Industry
- Max
- 1.80
- Q3
- 1.60
- Median
- 1.23
- Q1
- 0.85
- Min
- 0.46
The Forward PEG Ratio is often not a primary valuation metric in the Oil & Gas Integrated industry.
Price-to-Sales Ratio
AR
2.50
Oil & Gas Exploration & Production Industry
- Max
- 6.31
- Q3
- 3.18
- Median
- 1.94
- Q1
- 1.00
- Min
- 0.32
AR’s P/S Ratio of 2.50 aligns with the market consensus for the Oil & Gas Exploration & Production industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
EC
0.57
Oil & Gas Integrated Industry
- Max
- 1.39
- Q3
- 1.23
- Median
- 0.82
- Q1
- 0.61
- Min
- 0.42
In the lower quartile for the Oil & Gas Integrated industry, EC’s P/S Ratio of 0.57 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
Price-to-Book Ratio
AR
1.61
Oil & Gas Exploration & Production Industry
- Max
- 2.84
- Q3
- 1.78
- Median
- 1.16
- Q1
- 0.77
- Min
- 0.23
AR’s P/B Ratio of 1.61 is within the conventional range for the Oil & Gas Exploration & Production industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
EC
0.72
Oil & Gas Integrated Industry
- Max
- 2.27
- Q3
- 1.77
- Median
- 1.38
- Q1
- 1.17
- Min
- 0.71
EC’s P/B Ratio of 0.72 is in the lower quartile for the Oil & Gas Integrated industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
Valuation at a Glance
| Symbol | AR | EC |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 400.65 | 5.37 |
| Forward PEG Ratio (TTM) | 120.06 | -1.12 |
| Price-to-Sales Ratio (P/S, TTM) | 2.50 | 0.57 |
| Price-to-Book Ratio (P/B, TTM) | 1.61 | 0.72 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 11.29 | 3.34 |
| EV-to-EBITDA (TTM) | 14.22 | 4.12 |
| EV-to-Sales (TTM) | 3.33 | 1.34 |