Epsilon Energy (NASDAQ:EPSN) and Lonestar Resources US (NASDAQ:LONE) are both small-cap oils/energy companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, valuation, earnings, institutional ownership and profitability.
Institutional and Insider Ownership
32.1% of Epsilon Energy shares are owned by institutional investors. Comparatively, 52.2% of Lonestar Resources US shares are owned by institutional investors. 33.6% of Epsilon Energy shares are owned by insiders. Comparatively, 2.9% of Lonestar Resources US shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This table compares Epsilon Energy and Lonestar Resources US’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Epsilon Energy||$29.68 million||2.92||$6.66 million||N/A||N/A|
|Lonestar Resources US||$201.17 million||0.25||$19.35 million||($0.07)||-28.29|
Lonestar Resources US has higher revenue and earnings than Epsilon Energy.
This table compares Epsilon Energy and Lonestar Resources US’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Lonestar Resources US||23.59%||1.93%||0.49%|
This is a summary of recent ratings for Epsilon Energy and Lonestar Resources US, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Lonestar Resources US||0||2||3||0||2.60|
Lonestar Resources US has a consensus price target of $7.00, indicating a potential upside of 253.54%. Given Lonestar Resources US’s higher possible upside, analysts clearly believe Lonestar Resources US is more favorable than Epsilon Energy.
Lonestar Resources US beats Epsilon Energy on 8 of the 10 factors compared between the two stocks.
About Epsilon Energy
Epsilon Energy Ltd., oil and gas company, engages in the acquisition, development, gathering, and production of oil and gas reserves in the United States and Canada. It operates through three segments: Upstream, Gathering System, and Canada. The company primarily focuses on the Marcellus Shale comprising 5,750 net acres located in the southwest Susquehanna County, Pennsylvania. As of December 31, 2018, it had total estimated net proved reserves of 119,116 million cubic feet of natural gas reserves and 30,502 barrels of oil and other liquids. Epsilon Energy Ltd. was founded in 2005 and is headquartered in Houston, Texas.
About Lonestar Resources US
Lonestar Resources US Inc., an independent oil and gas company, engages in the acquisition, development, and production of unconventional oil, natural gas liquids, and natural gas properties in the United States. The company primarily focuses on Eagle Ford Shale properties that cover an area of 57,491 net acres in Texas counties. Lonestar Resources US Inc. was incorporated in 2015 and is headquartered in Fort Worth, Texas.
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