Critical Analysis: Atlas Energy Solutions (NYSE:AESI) and Ovintiv (NYSE:OVV)

Atlas Energy Solutions (NYSE:AESIGet Free Report) and Ovintiv (NYSE:OVVGet Free Report) are both oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, earnings, valuation, profitability and dividends.

Profitability

This table compares Atlas Energy Solutions and Ovintiv’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Atlas Energy Solutions 21.24% 95.51% 12.65%
Ovintiv 23.46% 16.15% 7.99%

Institutional & Insider Ownership

17.9% of Atlas Energy Solutions shares are held by institutional investors. Comparatively, 98.3% of Ovintiv shares are held by institutional investors. 82.4% of Atlas Energy Solutions shares are held by company insiders. Comparatively, 1.7% of Ovintiv shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Atlas Energy Solutions and Ovintiv, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Atlas Energy Solutions 0 0 9 1 3.10
Ovintiv 0 6 8 0 2.57

Atlas Energy Solutions currently has a consensus target price of $24.90, indicating a potential upside of 44.10%. Ovintiv has a consensus target price of $53.38, indicating a potential upside of 27.71%. Given Atlas Energy Solutions’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Atlas Energy Solutions is more favorable than Ovintiv.

Dividends

Atlas Energy Solutions pays an annual dividend of $0.60 per share and has a dividend yield of 3.5%. Ovintiv pays an annual dividend of $1.20 per share and has a dividend yield of 2.9%. Ovintiv pays out 11.9% of its earnings in the form of a dividend. Ovintiv has increased its dividend for 3 consecutive years.

Earnings and Valuation

This table compares Atlas Energy Solutions and Ovintiv’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Atlas Energy Solutions $482.72 million 3.58 $217.01 million N/A N/A
Ovintiv $12.46 billion 0.92 $3.64 billion $10.08 4.15

Ovintiv has higher revenue and earnings than Atlas Energy Solutions.

Summary

Atlas Energy Solutions beats Ovintiv on 10 of the 15 factors compared between the two stocks.

About Atlas Energy Solutions

(Get Free Report)

Atlas Energy Solutions Inc. provides proppant and logistics services to the oil and natural gas industry within the Permian Basin of West Texas and New Mexico. The company was founded in 2017 and is based in Austin, Texas.

About Ovintiv

(Get Free Report)

Ovintiv Inc., together with its subsidiaries, explores, develops, produces, and markets natural gas, oil, and natural gas liquids in the United States and Canada. It operates through USA Operations, Canadian Operations, and Market Optimization segments. The company's principal assets include Permian in west Texas and Anadarko in west-central Oklahoma; and Montney in northeast British Columbia and northwest Alberta. Its other upstream assets comprise Bakken in northwest North Dakota, and Uinta in central Utah; and Horn River in northeast British Columbia, and Wheatland in southern Alberta. The company was formerly known as Encana Corporation and changed its name to Ovintiv Inc. in January 2020. Ovintiv Inc. was incorporated in 2020 and is based in Denver, Colorado.

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