Head to Head Review: Galp Energia, SGPS (OTCMKTS:GLPEY) versus Atlas Energy Solutions (NYSE:AESI)

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

Insider and Institutional Ownership

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

Analyst Ratings

This is a breakdown of recent recommendations for Galp Energia, SGPS and Atlas Energy Solutions, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Galp Energia, SGPS	0	0	0	0	N/A
Atlas Energy Solutions	0	0	8	2	3.20

Atlas Energy Solutions has a consensus price target of $25.75, suggesting a potential upside of 26.44%. Given Atlas Energy Solutions’ higher possible upside, analysts plainly believe Atlas Energy Solutions is more favorable than Galp Energia, SGPS.

Dividends

Galp Energia, SGPS pays an annual dividend of $0.13 per share and has a dividend yield of 1.5%. Atlas Energy Solutions pays an annual dividend of $0.92 per share and has a dividend yield of 4.5%. Galp Energia, SGPS pays out 13.7% of its earnings in the form of a dividend. Atlas Energy Solutions pays out 51.1% 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.

Profitability

This table compares Galp Energia, SGPS and Atlas Energy Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Galp Energia, SGPS	6.32%	25.06%	8.36%
Atlas Energy Solutions	13.71%	16.75%	7.61%

Risk and Volatility

Galp Energia, SGPS has a beta of 0.48, suggesting that its stock price is 52% less volatile than the S&P 500. Comparatively, Atlas Energy Solutions has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500.

Valuation & Earnings

This table compares Galp Energia, SGPS and Atlas Energy Solutions”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Galp Energia, SGPS	$22.04 billion	0.60	$1.34 billion	$0.95	8.98
Atlas Energy Solutions	$778.94 million	2.62	$105.43 million	$1.80	11.31

Galp Energia, SGPS has higher revenue and earnings than Atlas Energy Solutions. Galp Energia, SGPS 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.

Summary

Atlas Energy Solutions beats Galp Energia, SGPS on 11 of the 16 factors compared between the two stocks.

About Galp Energia, SGPS

Galp Energia, SGPS, S.A. operates as an integrated energy operator in Portugal and internationally. The company operates through four segments: Upstream, Industrial & Midstream, Commercial, and Renewables and New Business. The Upstream segment engages in the exploration, development, and production of hydrocarbons primarily in Brazil, Mozambique, Namibia, and Angola. The Industrial & Midstream segment owns refineries in Portugal, as well as is involved in activities related to energy management of oil products, gas, and electricity. This segment provides storage and transportation infrastructure for oil and gas products, as well as engages in the sale of electricity to the grid in Portugal and Spain. The Commercial segment is involved in the areas of retail to final business-to-business and business to consumer customers of oil, gas, and electricity. The Renewables and New Business segment is involved in the development of solar and wind power generation projects in Portugal and Spain. In addition, it produces lithium-ion batteries, hydrogen, and biofuels; and operates service stations. Further, the company engages in the reinsurance business. The company was formerly known as Galp Petróleos e Gás de Portugal, SGPS, S.A. and changed its name to Galp Energia, SGPS, S.A. in September 2000. Galp Energia, SGPS, S.A. was incorporated in 1999 and is headquartered in Lisbon, Portugal.

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.