Comparing Weatherford International (NASDAQ:WFRD) and Atlas Energy Solutions (NYSE:AESI)

Atlas Energy Solutions (NYSE:AESI) and Weatherford International (NASDAQ:WFRD) are both energy companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, institutional ownership, profitability, dividends and earnings.

Risk & Volatility

Atlas Energy Solutions has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500. Comparatively, Weatherford International has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Atlas Energy Solutions	-11.08%	-9.57%	-4.84%
Weatherford International	7.66%	21.50%	7.09%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Atlas Energy Solutions and Weatherford International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atlas Energy Solutions	2	4	5	0	2.27
Weatherford International	1	2	6	0	2.56

Atlas Energy Solutions presently has a consensus price target of $17.67, suggesting a potential upside of 47.79%. Weatherford International has a consensus price target of $119.14, suggesting a potential upside of 55.21%. Given Weatherford International’s stronger consensus rating and higher possible upside, analysts plainly believe Weatherford International is more favorable than Atlas Energy Solutions.

Insider & Institutional Ownership

34.6% of Atlas Energy Solutions shares are held by institutional investors. Comparatively, 97.2% of Weatherford International shares are held by institutional investors. 16.4% of Atlas Energy Solutions shares are held by insiders. Comparatively, 2.1% of Weatherford International shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Atlas Energy Solutions and Weatherford International”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Atlas Energy Solutions	$1.07 billion	1.40	-$50.30 million	($0.95)	-12.58
Weatherford International	$4.92 billion	1.12	$431.00 million	$5.07	15.14

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

Dividends

Atlas Energy Solutions pays an annual dividend of $1.00 per share and has a dividend yield of 8.4%. Weatherford International pays an annual dividend of $1.10 per share and has a dividend yield of 1.4%. Atlas Energy Solutions pays out -105.3% of its earnings in the form of a dividend. Weatherford International pays out 21.7% 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. Atlas Energy Solutions has increased its dividend for 2 consecutive years. Atlas Energy Solutions is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Weatherford International beats Atlas Energy Solutions on 11 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 Weatherford International

Weatherford International plc, an energy services company, provides equipment and services for the drilling, evaluation, completion, production, and intervention of oil, geothermal, and natural gas wells worldwide. The company operates through three segments: Drilling and Evaluation; Well Construction and Completions; and Production and Intervention. It offers artificial lift systems, including reciprocating rod, progressing cavity pumping, gas, hydraulic, plunger, and hybrid lift systems, as well as related automation and control systems; pressure pumping and reservoir stimulation services, such as acidizing, fracturing, cementing, and coiled-tubing intervention; and software, automation and flow measurement solutions. The company also provides safety, downhole reservoir monitoring, flow control, and multistage fracturing systems, as well as sand-control technologies, and production and isolation packers; liner hangers to suspend a casing string in high-temperature and high-pressure wells; cementing products, including plugs, float and stage equipment, and torque-and-drag reduction technology for zonal isolation; and pre-job planning and installation services. In addition, it offers directional drilling services, and logging and measurement services while drilling; services related to rotary-steerable systems, high temperature and high pressure sensors, drilling reamers, and circulation subs; rotating control devices and advanced automated control systems, as well as closed loop drilling, air drilling, managed-pressure drilling, and underbalanced drilling services; open-hole and cased-hole logging services; and intervention and remediation services. Further, it provides tubular handling, management, and connection services; and re-entry, fishing, and well abandonment services, as well as patented bottom hole, tubular-handling equipment, pressure-control equipment, and drill pipe and collars. The company was incorporated in 1972 and is based in Houston, Texas.