Epsilon Energy (NASDAQ:EPSN – Get Free Report) and EQT (NYSE:EQT – Get Free Report) are both oils/energy companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, earnings, valuation, institutional ownership and risk.
Institutional and Insider Ownership
60.3% of Epsilon Energy shares are owned by institutional investors. Comparatively, 90.8% of EQT shares are owned by institutional investors. 5.5% of Epsilon Energy shares are owned by company insiders. Comparatively, 0.6% of EQT shares are owned 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.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Epsilon Energy and EQT, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Epsilon Energy | 0 | 0 | 1 | 1 | 3.50 |
| EQT | 0 | 7 | 11 | 0 | 2.61 |
Dividends
Epsilon Energy pays an annual dividend of $0.25 per share and has a dividend yield of 4.1%. EQT pays an annual dividend of $0.63 per share and has a dividend yield of 1.2%. Epsilon Energy pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. EQT pays out 75.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Risk and Volatility
Epsilon Energy has a beta of 0.37, suggesting that its share price is 63% less volatile than the S&P 500. Comparatively, EQT has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500.
Earnings & Valuation
This table compares Epsilon Energy and EQT”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Epsilon Energy | $30.73 million | 4.29 | $6.95 million | $0.25 | 24.12 |
| EQT | $4.79 billion | 6.37 | $1.74 billion | $0.84 | 60.84 |
EQT has higher revenue and earnings than Epsilon Energy. Epsilon Energy is trading at a lower price-to-earnings ratio than EQT, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Epsilon Energy and EQT’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Epsilon Energy | 16.97% | 5.31% | 4.30% |
| EQT | 5.52% | 3.74% | 2.12% |
Summary
EQT beats Epsilon Energy on 9 of the 17 factors compared between the two stocks.
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.
About EQT
EQT Corporation operates as a natural gas production company in the United States. The company sells natural gas and natural gas liquids to marketers, utilities, and industrial customers through pipelines located in the Appalachian Basin. It also offers marketing services and contractual pipeline capacity management services. The company was formerly known as Equitable Resources Inc. and changed its name to EQT Corporation in February 2009. EQT Corporation was founded in 1878 and is headquartered in Pittsburgh, Pennsylvania.
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