Reviewing EQT (NYSE:EQT) and Atlas Energy Solutions (NYSE:AESI)

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

Dividends

Atlas Energy Solutions pays an annual dividend of $0.92 per share and has a dividend yield of 4.0%. EQT pays an annual dividend of $0.63 per share and has a dividend yield of 1.8%. Atlas Energy Solutions pays out 51.1% of its earnings in the form of a dividend. EQT pays out 45.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Risk & Volatility

Atlas Energy Solutions has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500. Comparatively, EQT has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Atlas Energy Solutions and EQT, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atlas Energy Solutions	0	0	8	2	3.20
EQT	0	8	9	0	2.53

Atlas Energy Solutions presently has a consensus target price of $26.25, suggesting a potential upside of 15.46%. EQT has a consensus target price of $43.28, suggesting a potential upside of 23.09%. Given EQT’s higher probable upside, analysts plainly believe EQT is more favorable than Atlas Energy Solutions.

Valuation & Earnings

This table compares Atlas Energy Solutions and EQT”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Atlas Energy Solutions	$613.96 million	4.07	$105.43 million	$1.80	12.63
EQT	$4.58 billion	3.39	$1.74 billion	$1.38	25.48

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

Insider & Institutional Ownership

34.6% of Atlas Energy Solutions shares are held by institutional investors. Comparatively, 90.8% of EQT shares are held by institutional investors. 24.3% of Atlas Energy Solutions shares are held by company insiders. Comparatively, 0.6% of EQT shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Atlas Energy Solutions	13.71%	16.75%	7.61%
EQT	12.45%	4.52%	2.68%

Summary

Atlas Energy Solutions beats EQT on 9 of the 17 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 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.