Analyzing W2 Energy (OTCMKTS:AEPT) and Hallador Energy (NASDAQ:HNRG)

W2 Energy (OTCMKTS:AEPT) and Hallador Energy (NASDAQ:HNRG) are both small-cap energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, earnings, analyst recommendations, valuation, dividends and institutional ownership.

Profitability

This table compares W2 Energy and Hallador Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
W2 Energy	N/A	N/A	N/A
Hallador Energy	-46.61%	11.58%	4.43%

Analyst Ratings

This is a summary of current recommendations and price targets for W2 Energy and Hallador Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
W2 Energy	0	0	0	0	0.00
Hallador Energy	1	3	2	1	2.43

Hallador Energy has a consensus target price of $21.25, suggesting a potential upside of 4.47%. Given Hallador Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Hallador Energy is more favorable than W2 Energy.

Insider and Institutional Ownership

2.3% of W2 Energy shares are owned by institutional investors. Comparatively, 61.4% of Hallador Energy shares are owned by institutional investors. 23.7% of Hallador Energy shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

W2 Energy has a beta of -0.28, meaning that its share price is 128% less volatile than the S&P 500. Comparatively, Hallador Energy has a beta of 0.44, meaning that its share price is 56% less volatile than the S&P 500.

Valuation and Earnings

This table compares W2 Energy and Hallador Energy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
W2 Energy	$23.81 million	0.00	N/A	N/A	N/A
Hallador Energy	$461.14 million	1.93	-$226.14 million	($4.48)	-4.54

W2 Energy has higher earnings, but lower revenue than Hallador Energy.

Summary

Hallador Energy beats W2 Energy on 10 of the 11 factors compared between the two stocks.

About W2 Energy

American Environmental Partners, Inc., through its subsidiaries, sources, treats, and distributes reclaimed water in the United States. It engages in the designing, construction, and operation of regional water treatment facilities that serve industrial, energy, and government sectors. The company also focuses on drilling, operating, and partnership opportunities in the upstream oil and gas space. It also provides geotechnical services; educational marketing platforms of podcasts and videography; and construction, drilling, flowback, completions, and well-site services. The company was formerly known as American Energy Partners, Inc. and changed its name to American Environmental Partners, Inc. in October 2023. The company was incorporated in 1997 and is based in Canonsburg, Pennsylvania.

About Hallador Energy

Hallador Energy Company, through its subsidiaries, engages in the production of steam coal in the State of Indiana for the electric power generation industry. The company owns the Oaktown Mine 1 and Oaktown Mine 2 underground mines in Oaktown; Freelandville Center Pit surface mine in Freelandville; and Prosperity Surface mine in Petersburg, Indiana. It is also involved in gas exploration activities in Indiana; and operation of logistics transport facility. Hallador Energy Company was founded in 1949 and is headquartered in Terre Haute, Indiana.