Head to Head Contrast: Epsilon Energy (NASDAQ:EPSN) vs. Mach Natural Resources (NYSE:MNR)

Epsilon Energy (NASDAQ:EPSN) and Mach Natural Resources (NYSE:MNR) are both small-cap oils/energy companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, dividends, risk, institutional ownership, valuation, analyst recommendations and earnings.

Institutional & Insider Ownership

60.3% of Epsilon Energy shares are owned by institutional investors. Comparatively, 78.4% of Mach Natural Resources shares are owned by institutional investors. 5.5% of Epsilon Energy shares are owned by insiders. Comparatively, 87.8% of Mach Natural Resources shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

Epsilon Energy pays an annual dividend of $0.25 per share and has a dividend yield of 3.9%. Mach Natural Resources pays an annual dividend of $2.00 per share and has a dividend yield of 12.3%. 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.

Profitability

This table compares Epsilon Energy and Mach Natural Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Epsilon Energy	16.97%	5.31%	4.30%
Mach Natural Resources	25.17%	23.58%	12.00%

Valuation & Earnings

This table compares Epsilon Energy and Mach Natural Resources”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Epsilon Energy	$30.73 million	4.61	$6.95 million	$0.25	25.92
Mach Natural Resources	$962.51 million	1.76	$346.56 million	N/A	N/A

Mach Natural Resources has higher revenue and earnings than Epsilon Energy.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Epsilon Energy and Mach Natural Resources, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Epsilon Energy	0	0	1	1	3.50
Mach Natural Resources	0	0	2	1	3.33

Epsilon Energy presently has a consensus target price of $7.00, indicating a potential upside of 8.02%. Mach Natural Resources has a consensus target price of $24.00, indicating a potential upside of 47.01%. Given Mach Natural Resources’ higher probable upside, analysts clearly believe Mach Natural Resources is more favorable than Epsilon Energy.

Volatility and Risk

Epsilon Energy has a beta of 0.37, suggesting that its stock price is 63% less volatile than the S&P 500. Comparatively, Mach Natural Resources has a beta of -0.79, suggesting that its stock price is 179% less volatile than the S&P 500.

Summary

Mach Natural Resources beats Epsilon Energy on 11 of the 14 factors compared between the two stocks.

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 Mach Natural Resources

Mach Natural Resources LP, an independent upstream oil and gas company, focuses on the acquisition, development, and production of oil, natural gas, and natural gas liquids reserves in the Anadarko Basin region of Western Oklahoma, Southern Kansas, and the panhandle of Texas. It also owns a portfolio of midstream assets, as well as owns plants and water infrastructure. The company was incorporated in 2023 and is headquartered in Oklahoma City, Oklahoma.