Head to Head Review: Atlas Energy Group (OTCMKTS:ATLS) versus 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 superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, institutional ownership, earnings and risk.

Valuation and Earnings

This table compares Epsilon Energy and Atlas Energy Group”s gross 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	4.51	$6.95 million	$0.25	25.36
Atlas Energy Group	N/A	N/A	N/A	N/A	N/A

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

Volatility & Risk

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

Analyst Ratings

This is a summary of current recommendations for Epsilon Energy and Atlas Energy Group, as reported 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 target price of $7.00, suggesting a potential upside of 10.41%. Given Epsilon Energy’s stronger consensus rating and higher possible upside, analysts plainly believe Epsilon Energy is more favorable 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

Insider & Institutional Ownership

60.3% of Epsilon Energy shares are owned by institutional investors. 5.5% of Epsilon Energy shares are owned by company insiders. Comparatively, 12.4% of Atlas Energy Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

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.