Head to Head Review: Epsilon Energy (EPSN) & Its Rivals

Epsilon Energy (NASDAQ:EPSN) is one of 1,050 public companies in the “Oil, Gas & Consumable Fuels” industry, but how does it weigh in compared to its competitors? We will compare Epsilon Energy to similar companies based on the strength of its institutional ownership, profitability, earnings, risk, analyst recommendations, valuation and dividends.

Earnings & Valuation

This table compares Epsilon Energy and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Epsilon Energy	$51.59 million	-$5.80 million	-30.76
Epsilon Energy Competitors	$272.77 billion	$5.52 billion	0.84

Epsilon Energy’s competitors have higher revenue and earnings than Epsilon Energy. Epsilon Energy is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

60.3% of Epsilon Energy shares are held by institutional investors. Comparatively, 30.7% of shares of all “Oil, Gas & Consumable Fuels” companies are held by institutional investors. 28.4% of Epsilon Energy shares are held by company insiders. Comparatively, 15.3% of shares of all “Oil, Gas & Consumable Fuels” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Epsilon Energy and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Epsilon Energy	-3.77%	5.56%	3.26%
Epsilon Energy Competitors	-472.95%	19.42%	6.31%

Analyst Recommendations

This is a breakdown of current ratings for Epsilon Energy and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Epsilon Energy	0	1	0	0	2.00
Epsilon Energy Competitors	5960	26925	40745	2403	2.52

As a group, “Oil, Gas & Consumable Fuels” companies have a potential upside of 16.90%. Given Epsilon Energy’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Epsilon Energy has less favorable growth aspects than its competitors.

Dividends

Epsilon Energy pays an annual dividend of $0.25 per share and has a dividend yield of 3.9%. Epsilon Energy pays out -119.0% of its earnings in the form of a dividend. As a group, “Oil, Gas & Consumable Fuels” companies pay a dividend yield of 8.4% and pay out -121.2% of their earnings in the form of a dividend. Epsilon Energy lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Volatility and Risk

Epsilon Energy has a beta of -0.06, meaning that its stock price is 106% less volatile than the S&P 500. Comparatively, Epsilon Energy’s competitors have a beta of -3.92, meaning that their average stock price is 492% less volatile than the S&P 500.

Summary

Epsilon Energy competitors beat Epsilon Energy on 11 of the 15 factors compared.

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.