Atlas Energy Solutions (NYSE:AESI) versus Chesapeake Energy (OTCMKTS:CHKAQ) Critical Analysis

Atlas Energy Solutions (NYSE:AESI) and Chesapeake Energy (OTCMKTS:CHKAQ) are both small-cap oils/energy companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, risk, dividends, valuation and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Atlas Energy Solutions	19.98%	29.56%	10.14%
Chesapeake Energy	-162.46%	N/A	-3.45%

Volatility and Risk

Atlas Energy Solutions has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500. Comparatively, Chesapeake Energy has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500.

Institutional & Insider Ownership

34.6% of Atlas Energy Solutions shares are owned by institutional investors. Comparatively, 2.0% of Chesapeake Energy shares are owned by institutional investors. 24.3% of Atlas Energy Solutions shares are owned by insiders. Comparatively, 1.1% of Chesapeake Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Atlas Energy Solutions	$613.96 million	3.17	$105.43 million	$1.80	10.80
Chesapeake Energy	$8.49 billion	0.00	-$308.00 million	($54.00)	-0.06

Atlas Energy Solutions has higher earnings, but lower revenue than Chesapeake Energy. Chesapeake Energy is trading at a lower price-to-earnings ratio than Atlas Energy Solutions, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Atlas Energy Solutions and Chesapeake Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atlas Energy Solutions	0	0	6	1	3.14
Chesapeake Energy	0	0	0	0	N/A

Atlas Energy Solutions currently has a consensus target price of $26.00, indicating a potential upside of 33.74%. Given Atlas Energy Solutions’ higher probable upside, analysts plainly believe Atlas Energy Solutions is more favorable than Chesapeake Energy.

Summary

Atlas Energy Solutions beats Chesapeake Energy on 12 of the 14 factors compared between the two stocks.

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.

About Chesapeake Energy

Chesapeake Energy Corp. is an independent exploration and production company, which engages in acquisition, exploration and development of properties for the production of oil, natural gas and natural gas liquids from underground reservoirs. It focuses on projects located in Louisiana, Ohio, Oklahoma, Pennsylvania, Texas, and Wyoming. The company was founded by Aubrey K. McClendon and Tom L. Ward on May 18, 1989 and is headquartered in Oklahoma City, OK.