Head-To-Head Analysis: Atlas Energy Group (OTCMKTS:ATLS) & Epsilon Energy (NASDAQ:EPSN)

Epsilon Energy (NASDAQ:EPSN) and Atlas Energy Group (OTCMKTS:ATLS) are both small-cap oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, profitability, institutional ownership, dividends and risk.

Volatility and Risk

Epsilon Energy has a beta of 0.37, suggesting that its share price is 63% less volatile than the S&P 500. Comparatively, Atlas Energy Group has a beta of 0.38, suggesting that its share price is 62% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Epsilon Energy and Atlas Energy Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Epsilon Energy	0	0	1	1	3.50
Atlas Energy Group	0	0	0	0	0.00

Epsilon Energy presently has a consensus price target of $7.00, indicating a potential upside of 15.70%. Given Epsilon Energy’s stronger consensus rating and higher probable upside, analysts clearly believe Epsilon Energy is more favorable than Atlas Energy Group.

Valuation and Earnings

This table compares Epsilon Energy and Atlas Energy Group”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	4.30	$6.95 million	$0.25	24.20
Atlas Energy Group	N/A	N/A	N/A	N/A	N/A

Epsilon Energy has higher revenue and earnings than Atlas Energy Group.

Profitability

This table compares Epsilon Energy and Atlas Energy Group’s 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%
Atlas Energy Group	N/A	N/A	N/A

Institutional & Insider Ownership

60.3% of Epsilon Energy shares are owned by institutional investors. 5.5% of Epsilon Energy shares are owned by insiders. Comparatively, 12.4% of Atlas Energy Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Epsilon Energy beats Atlas Energy Group on 9 of the 11 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 Atlas Energy Group

Atlas Energy Group, LLC, through its subsidiaries, develops and produces natural gas, crude oil, and natural gas liquids in the United States. The company has interests in the Eagle Ford Shale in southern Texas; the Marble Falls play in the Fort Worth Basin in northern Texas; and the Mississippi Lime play in northwestern Oklahoma. It also focuses on investing in master limited partnership qualifying energy-related businesses and assets. The company was founded in 2011 and is based in Fort Worth, Texas.