Epsilon Energy (NASDAQ:EPSN) versus Crescent Energy (NYSE:CRGY) Financial Survey

Epsilon Energy (NASDAQ:EPSN) and Crescent Energy (NYSE:CRGY) are both energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, risk, profitability, valuation and earnings.

Dividends

Epsilon Energy pays an annual dividend of $0.25 per share and has a dividend yield of 4.6%. Crescent Energy pays an annual dividend of $0.48 per share and has a dividend yield of 4.0%. Epsilon Energy pays out -119.0% of its earnings in the form of a dividend. Crescent Energy pays out -2,400.0% 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. Crescent Energy has increased its dividend for 1 consecutive years.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Epsilon Energy	$51.59 million	3.19	-$5.80 million	($0.21)	-25.86
Crescent Energy	$3.58 billion	1.43	$132.91 million	($0.02)	-603.75

Crescent Energy has higher revenue and earnings than Epsilon Energy. Crescent 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 Epsilon Energy and Crescent Energy’s 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%
Crescent Energy	1.30%	13.43%	5.61%

Insider & Institutional Ownership

60.3% of Epsilon Energy shares are held by institutional investors. Comparatively, 52.1% of Crescent Energy shares are held by institutional investors. 28.4% of Epsilon Energy shares are held by company insiders. Comparatively, 13.2% of Crescent Energy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Epsilon Energy and Crescent Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Epsilon Energy	0	1	0	0	2.00
Crescent Energy	1	5	11	1	2.67

Crescent Energy has a consensus target price of $17.21, suggesting a potential upside of 42.56%. Given Crescent Energy’s stronger consensus rating and higher probable upside, analysts clearly believe Crescent Energy is more favorable than Epsilon Energy.

Summary

Crescent Energy beats Epsilon Energy on 12 of the 17 factors compared between the two stocks.

About Epsilon Energy

Epsilon Energy Ltd. is an independent energy company focused on the acquisition, development and production of natural gas and related hydrocarbons in the United States. The company’s operations include interests in natural gas properties in Pennsylvania’s Marcellus Shale and Oklahoma’s Anadarko Basin. Its activities also include midstream infrastructure, including a natural gas gathering system in Pennsylvania. Epsilon’s business combines natural gas production with ownership interests in infrastructure used to gather and transport gas from producing areas.

About Crescent Energy

Crescent Energy Company is an independent energy company focused on acquiring, developing and producing oil and natural gas from onshore properties in the United States. Its operations include exploration and production, supported by activities to manage and develop its portfolio of energy assets. The company was formed in 2021 through the combination of Contango Oil & Gas and Independence Energy. Its portfolio includes properties in the Eagle Ford region of Texas and other U.S. producing basins.