Reviewing New Concept Energy (NYSE:GBR) & Epsilon Energy (NASDAQ:EPSN)

New Concept Energy (NYSE:GBR) and Epsilon Energy (NASDAQ:EPSN) are both oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.

Analyst Ratings

This is a breakdown of recent ratings and target prices for New Concept Energy and Epsilon Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
New Concept Energy	0	0	0	0	0.00
Epsilon Energy	0	0	1	1	3.50

Epsilon Energy has a consensus price target of $7.00, suggesting a potential upside of 16.47%. Given Epsilon Energy’s stronger consensus rating and higher probable upside, analysts clearly believe Epsilon Energy is more favorable than New Concept Energy.

Insider & Institutional Ownership

60.3% of Epsilon Energy shares are owned by institutional investors. 2.1% of New Concept Energy 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, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares New Concept Energy and Epsilon Energy”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
New Concept Energy	$150,000.00	N/A	-$20,000.00	($0.03)	-39.02
Epsilon Energy	$30.73 million	4.28	$6.95 million	$0.25	24.04

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
New Concept Energy	-25.85%	-0.83%	-0.82%
Epsilon Energy	16.97%	5.31%	4.30%

Risk and Volatility

New Concept Energy has a beta of 0.29, suggesting that its share price is 71% less volatile than the S&P 500. Comparatively, Epsilon Energy has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500.

Summary

Epsilon Energy beats New Concept Energy on 14 of the 14 factors compared between the two stocks.

About New Concept Energy

New Concept Energy, Inc. engages in real estate rental business. The company owns approximately 190 acres of land located in Parkersburg West Virginia. It also provides advisory and management services for an independent oil and gas company. The company was formerly known as CabelTel International Corporation and changed its name to New Concept Energy, Inc. in May 2008. New Concept Energy, Inc. is based in Dallas, Texas.

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.