Critical Contrast: Epsilon Energy (NASDAQ:EPSN) & Antero Resources (NYSE:AR)

Antero Resources (NYSE:AR) and Epsilon Energy (NASDAQ:EPSN) are both oils/energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, dividends, risk, earnings, analyst recommendations, valuation and institutional ownership.

Earnings and Valuation

This table compares Antero Resources and Epsilon Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Antero Resources	$4.08 billion	2.54	$242.92 million	$0.14	237.86
Epsilon Energy	$31.15 million	4.12	$6.95 million	$0.25	23.48

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

Volatility and Risk

Antero Resources has a beta of 3.42, indicating that its share price is 242% more volatile than the S&P 500. Comparatively, Epsilon Energy has a beta of 0.39, indicating that its share price is 61% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Antero Resources	1.03%	-0.59%	-0.32%
Epsilon Energy	16.97%	5.31%	4.30%

Insider & Institutional Ownership

83.0% of Antero Resources shares are owned by institutional investors. Comparatively, 60.3% of Epsilon Energy shares are owned by institutional investors. 6.7% of Antero Resources shares are owned by company insiders. Comparatively, 5.5% of Epsilon Energy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations for Antero Resources and Epsilon Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Antero Resources	0	8	9	2	2.68
Epsilon Energy	0	0	1	1	3.50

Antero Resources currently has a consensus price target of $34.78, suggesting a potential upside of 4.44%. Epsilon Energy has a consensus price target of $7.00, suggesting a potential upside of 19.25%. Given Epsilon Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Epsilon Energy is more favorable than Antero Resources.

Summary

Antero Resources beats Epsilon Energy on 8 of the 15 factors compared between the two stocks.

About Antero Resources

Antero Resources Corporation, an independent oil and natural gas company, engages in the development, production, exploration, and acquisition of natural gas, natural gas liquids (NGLs), and oil properties in the United States. It operates in three segments: Exploration and Development; Marketing; and Equity Method Investment in Antero Midstream. As of December 31, 2023, the company had approximately 515,000 net acres in the Appalachian Basin; and approximately 172,000 net acres in the Upper Devonian Shale. Its gathering and compression systems also comprise 631 miles of gas gathering pipelines in the Appalachian Basin. The company was formerly known as Antero Resources Appalachian Corporation and changed its name to Antero Resources Corporation in June 2013. Antero Resources Corporation was incorporated in 2002 and is headquartered in Denver, Colorado.

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.