Reviewing Epsilon Energy (EPSN) and Its Competitors

Epsilon Energy (NASDAQ:EPSN) is one of 1,050 publicly-traded companies in the “Oil, Gas & Consumable Fuels” industry, but how does it contrast to its peers? We will compare Epsilon Energy to similar businesses based on the strength of its analyst recommendations, valuation, earnings, institutional ownership, dividends, profitability and risk.

Institutional and Insider Ownership

60.3% of Epsilon Energy shares are held by institutional investors. Comparatively, 30.7% of shares of all “Oil, Gas & Consumable Fuels” companies are held by institutional investors. 28.4% of Epsilon Energy shares are held by company insiders. Comparatively, 15.3% of shares of all “Oil, Gas & Consumable Fuels” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Epsilon Energy has a beta of -0.06, indicating that its stock price is 106% less volatile than the S&P 500. Comparatively, Epsilon Energy’s peers have a beta of -3.92, indicating that their average stock price is 492% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Epsilon Energy and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Epsilon Energy	0	1	0	0	2.00
Epsilon Energy Competitors	5960	26925	40745	2403	2.52

As a group, “Oil, Gas & Consumable Fuels” companies have a potential upside of 16.90%. Given Epsilon Energy’s peers stronger consensus rating and higher possible upside, analysts clearly believe Epsilon Energy has less favorable growth aspects than its peers.

Profitability

This table compares Epsilon Energy and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Epsilon Energy	-3.77%	5.56%	3.26%
Epsilon Energy Competitors	-472.95%	19.42%	6.31%

Dividends

Epsilon Energy pays an annual dividend of $0.25 per share and has a dividend yield of 3.9%. Epsilon Energy pays out -119.0% of its earnings in the form of a dividend. As a group, “Oil, Gas & Consumable Fuels” companies pay a dividend yield of 8.4% and pay out -121.2% of their earnings in the form of a dividend. Epsilon Energy lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Earnings and Valuation

This table compares Epsilon Energy and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Epsilon Energy	$51.59 million	-$5.80 million	-30.76
Epsilon Energy Competitors	$272.77 billion	$5.52 billion	0.84

Epsilon Energy’s peers have higher revenue and earnings than Epsilon Energy. Epsilon Energy is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Epsilon Energy peers beat Epsilon Energy on 11 of the 15 factors compared.

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.