Financial Review: Atlas Energy Solutions (NYSE:AESI) and Sable Offshore (NYSE:SOC)

Sable Offshore (NYSE:SOC) and Atlas Energy Solutions (NYSE:AESI) are both small-cap energy companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, risk, earnings, profitability, analyst recommendations, dividends and valuation.

Insider and Institutional Ownership

26.2% of Sable Offshore shares are held by institutional investors. Comparatively, 34.6% of Atlas Energy Solutions shares are held by institutional investors. 36.4% of Sable Offshore shares are held by company insiders. Comparatively, 16.0% of Atlas Energy Solutions shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Sable Offshore and Atlas Energy Solutions”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sable Offshore	N/A	N/A	-$629.07 million	N/A	N/A
Atlas Energy Solutions	$1.16 billion	1.45	$59.94 million	$0.31	44.00

Atlas Energy Solutions has higher revenue and earnings than Sable Offshore.

Analyst Recommendations

This is a summary of recent ratings for Sable Offshore and Atlas Energy Solutions, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sable Offshore	1	0	6	0	2.71
Atlas Energy Solutions	0	6	5	0	2.45

Sable Offshore presently has a consensus target price of $30.33, suggesting a potential upside of 38.32%. Atlas Energy Solutions has a consensus target price of $19.28, suggesting a potential upside of 41.33%. Given Atlas Energy Solutions’ higher probable upside, analysts plainly believe Atlas Energy Solutions is more favorable than Sable Offshore.

Risk and Volatility

Sable Offshore has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500. Comparatively, Atlas Energy Solutions has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sable Offshore	N/A	-145.52%	-23.70%
Atlas Energy Solutions	2.96%	4.99%	2.70%

Summary

Atlas Energy Solutions beats Sable Offshore on 8 of the 11 factors compared between the two stocks.

About Sable Offshore

Sable Offshore Corp. engages in the oil and gas exploration and development activities in the United States. The company operates through three platforms located in federal waters offshore California. It owns and operates 16 federal leases across approximately 76,000 acres and subsea pipelines, which transport crude oil, natural gas, and produced water from the platforms to the onshore processing facilities. The company was formerly known as Flame Acquisition Corp. and changed its name to Sable Offshore Corp. in February 2024. Sable Offshore Corp. was incorporated in 2020 and is based in Houston, Texas.

About Atlas Energy Solutions

Atlas Energy Solutions Inc. engages in the production, processing, and sale of mesh and sand that are used as a proppant during the well completion process in the Permian Basin of Texas and New Mexico. The company provides transportation and logistics, storage solutions, and contract labor services. It sells its products and services to oil and natural gas exploration and production companies, and oilfield services companies. Atlas Energy Solutions Inc. was founded in 2017 and is headquartered in Austin, Texas.