Epsilon Energy (NASDAQ:EPSN – Get Free Report) and Atlas Energy Solutions (NYSE:AESI – Get Free Report) are both small-cap energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, risk, valuation and profitability.
Valuation and Earnings
This table compares Epsilon Energy and Atlas Energy Solutions”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Epsilon Energy | $31.52 million | 3.89 | $1.93 million | $0.24 | 23.17 |
| Atlas Energy Solutions | $1.06 billion | 1.25 | $59.94 million | $0.14 | 75.89 |
Profitability
This table compares Epsilon Energy and Atlas Energy Solutions’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Epsilon Energy | 11.75% | 6.71% | 5.39% |
| Atlas Energy Solutions | 1.20% | 3.11% | 1.71% |
Dividends
Epsilon Energy pays an annual dividend of $0.25 per share and has a dividend yield of 4.5%. Atlas Energy Solutions pays an annual dividend of $1.00 per share and has a dividend yield of 9.4%. Epsilon Energy pays out 104.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Atlas Energy Solutions pays out 714.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Atlas Energy Solutions has raised its dividend for 2 consecutive years. Atlas Energy Solutions is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional and Insider Ownership
60.3% of Epsilon Energy shares are held by institutional investors. Comparatively, 34.6% of Atlas Energy Solutions shares are held by institutional investors. 7.1% of Epsilon Energy shares are held by company insiders. Comparatively, 16.0% of Atlas Energy Solutions shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Epsilon Energy and Atlas Energy Solutions, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Epsilon Energy | 0 | 0 | 1 | 1 | 3.50 |
| Atlas Energy Solutions | 0 | 7 | 4 | 0 | 2.36 |
Epsilon Energy currently has a consensus price target of $7.70, indicating a potential upside of 38.49%. Atlas Energy Solutions has a consensus price target of $18.83, indicating a potential upside of 77.25%. Given Atlas Energy Solutions’ higher possible upside, analysts clearly believe Atlas Energy Solutions is more favorable than Epsilon Energy.
Risk & Volatility
Epsilon Energy has a beta of 0.12, indicating that its share price is 88% less volatile than the S&P 500. Comparatively, Atlas Energy Solutions has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500.
About Epsilon Energy
Epsilon Energy Ltd., a North American onshore independent natural gas and oil company, engages in the acquisition, development, gathering, and production of natural oil and gas reserves in the United States. The company operates through Upstream and Gathering System segments. It has natural gas production in the Marcellus Shale in Pennsylvania; and oil, natural gas liquids, and natural gas production in the Permian Basin in Texas and New Mexico, and Anadarko Basin in Oklahoma. Epsilon Energy Ltd. was incorporated in 2005 and is based in Calgary, Canada.
About Atlas Energy Solutions
Atlas Energy Solutions Inc. engages in the production, processing, and sale of mesh and sand that are used as a proppant during the well completion process in the Permian Basin of Texas and New Mexico. The company provides transportation and logistics, storage solutions, and contract labor services. It sells its products and services to oil and natural gas exploration and production companies, and oilfield services companies. Atlas Energy Solutions Inc. was founded in 2017 and is headquartered in Austin, Texas.
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