Epsilon Energy (NASDAQ:EPSN) & EQT (NYSE:EQT) Head-To-Head Analysis

EQT (NYSE:EQT) and Epsilon Energy (NASDAQ:EPSN) are both oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, analyst recommendations and earnings.

Earnings and Valuation

This table compares EQT and Epsilon Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EQT	$6.91 billion	4.41	$1.74 billion	$0.84	60.84
Epsilon Energy	$31.15 million	4.23	$6.95 million	$0.25	24.12

EQT has higher revenue and earnings than Epsilon Energy. Epsilon Energy is trading at a lower price-to-earnings ratio than EQT, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares EQT and Epsilon Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
EQT	5.52%	3.74%	2.12%
Epsilon Energy	16.97%	5.31%	4.30%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for EQT and Epsilon Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EQT	0	7	11	0	2.61
Epsilon Energy	0	0	1	1	3.50

EQT currently has a consensus price target of $49.94, suggesting a potential downside of 2.28%. Epsilon Energy has a consensus price target of $7.00, suggesting a potential upside of 16.09%. Given Epsilon Energy’s stronger consensus rating and higher possible upside, analysts plainly believe Epsilon Energy is more favorable than EQT.

Insider and Institutional Ownership

90.8% of EQT shares are held by institutional investors. Comparatively, 60.3% of Epsilon Energy shares are held by institutional investors. 0.6% of EQT shares are held by company insiders. Comparatively, 5.5% of Epsilon Energy shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

EQT pays an annual dividend of $0.63 per share and has a dividend yield of 1.2%. Epsilon Energy pays an annual dividend of $0.25 per share and has a dividend yield of 4.1%. EQT pays out 75.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Epsilon Energy pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Risk & Volatility

EQT has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500. Comparatively, Epsilon Energy has a beta of 0.37, indicating that its share price is 63% less volatile than the S&P 500.

Summary

EQT beats Epsilon Energy on 9 of the 17 factors compared between the two stocks.

About EQT

EQT Corporation operates as a natural gas production company in the United States. The company sells natural gas and natural gas liquids to marketers, utilities, and industrial customers through pipelines located in the Appalachian Basin. It also offers marketing services and contractual pipeline capacity management services. The company was formerly known as Equitable Resources Inc. and changed its name to EQT Corporation in February 2009. EQT Corporation was founded in 1878 and is headquartered in Pittsburgh, Pennsylvania.

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.