Atlas Energy Solutions (NYSE:AESI – Get Free Report) and SandRidge Energy (NYSE:SD – Get Free Report) are both small-cap energy companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, profitability, dividends, analyst recommendations, valuation and institutional ownership.
Insider & Institutional Ownership
34.6% of Atlas Energy Solutions shares are held by institutional investors. Comparatively, 61.8% of SandRidge Energy shares are held by institutional investors. 16.0% of Atlas Energy Solutions shares are held by insiders. Comparatively, 1.5% of SandRidge Energy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Volatility and Risk
Atlas Energy Solutions has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500. Comparatively, SandRidge Energy has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Atlas Energy Solutions | $1.10 billion | 1.28 | -$50.30 million | ($0.40) | -28.28 |
| SandRidge Energy | $156.36 million | 4.08 | $62.99 million | $1.90 | 9.12 |
SandRidge Energy has lower revenue, but higher earnings than Atlas Energy Solutions. Atlas Energy Solutions is trading at a lower price-to-earnings ratio than SandRidge Energy, indicating that it is currently the more affordable of the two stocks.
Dividends
Atlas Energy Solutions pays an annual dividend of $1.00 per share and has a dividend yield of 8.8%. SandRidge Energy pays an annual dividend of $0.48 per share and has a dividend yield of 2.8%. Atlas Energy Solutions pays out -250.0% of its earnings in the form of a dividend. SandRidge Energy pays out 25.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Atlas Energy Solutions has increased its dividend for 2 consecutive years and SandRidge Energy has increased its dividend for 2 consecutive years. Atlas Energy Solutions is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares Atlas Energy Solutions and SandRidge Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Atlas Energy Solutions | -4.59% | -2.84% | -1.58% |
| SandRidge Energy | 44.90% | 11.43% | 9.08% |
Analyst Recommendations
This is a summary of recent ratings and price targets for Atlas Energy Solutions and SandRidge Energy, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Atlas Energy Solutions | 3 | 3 | 3 | 0 | 2.00 |
| SandRidge Energy | 0 | 1 | 0 | 0 | 2.00 |
Atlas Energy Solutions presently has a consensus target price of $11.20, indicating a potential downside of 0.97%. Given Atlas Energy Solutions’ higher possible upside, research analysts clearly believe Atlas Energy Solutions is more favorable than SandRidge Energy.
Summary
SandRidge Energy beats Atlas Energy Solutions on 8 of the 15 factors compared between the two stocks.
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.
About SandRidge Energy
SandRidge Energy, Inc. engages in the acquisition, development, and production of oil, natural gas, and natural gas liquids in the United States Mid-Continent. The company was incorporated in 2006 and is headquartered in Oklahoma City, Oklahoma.
Receive News & Ratings for Atlas Energy Solutions Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Atlas Energy Solutions and related companies with MarketBeat.com's FREE daily email newsletter.
