Head-To-Head Analysis: Epsilon Energy (NASDAQ:EPSN) and Permian Resources (NASDAQ:PR)

Epsilon Energy (NASDAQ:EPSNGet Rating) and Permian Resources (NASDAQ:PRGet Rating) 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 analyst recommendations, dividends, valuation, earnings, profitability, risk and institutional ownership.

Risk and Volatility

Epsilon Energy has a beta of 0.3, indicating that its share price is 70% less volatile than the S&P 500. Comparatively, Permian Resources has a beta of 4.75, indicating that its share price is 375% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Epsilon Energy 42.69% 31.90% 25.00%
Permian Resources 28.46% 18.68% 13.04%

Institutional & Insider Ownership

58.7% of Epsilon Energy shares are owned by institutional investors. 24.4% of Epsilon Energy shares are owned by insiders. Comparatively, 29.2% of Permian Resources shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for Epsilon Energy and Permian Resources, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Epsilon Energy 0 0 0 0 N/A
Permian Resources 0 0 1 0 3.00

Permian Resources has a consensus target price of $12.00, suggesting a potential upside of 74.17%. Given Permian Resources’ higher probable upside, analysts plainly believe Permian Resources is more favorable than Epsilon Energy.

Earnings and Valuation

This table compares Epsilon Energy and Permian Resources’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Epsilon Energy $42.40 million 3.58 $11.63 million $1.07 6.17
Permian Resources $1.03 billion 1.91 $138.18 million $1.28 5.38

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

Summary

Permian Resources beats Epsilon Energy on 7 of the 13 factors compared between the two stocks.

About Epsilon Energy

(Get Rating)

Epsilon Energy Ltd., a natural gas and oil company, engages in the acquisition, development, gathering, and production of oil and gas reserves in the United States. It operates through Upstream and Gathering System segments. The Company has natural gas production in the Marcellus in Pennsylvania; and oil, natural gas liquids (NGL), and natural gas production in the Anadarko Basin in Oklahoma. As of December 31, 2021, it had total estimated net proved reserves of 110,969 million cubic feet of natural gas reserves, 819,726 barrels of NGL, and 305,052 barrels of oil and other liquids. Epsilon Energy Ltd. was incorporated in 2005 and is based in Houston, Texas.

About Permian Resources

(Get Rating)

Permian Resources Corp. operates as an oil and natural gas company. It focuses on the development of unconventional oil and liquids-rich natural gas reserves in the Permian Basin. The company was founded on October 6, 2014 and is headquartered in Denver, CO.

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