Analyzing Epsilon Energy (NASDAQ:EPSN) and Mach Natural Resources (NYSE:MNR)

Mach Natural Resources (NYSE:MNR) and Epsilon Energy (NASDAQ:EPSN) are both small-cap oils/energy companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, institutional ownership and risk.

Volatility and Risk

Mach Natural Resources has a beta of -0.79, meaning that its share price is 179% less volatile than the S&P 500. Comparatively, Epsilon Energy has a beta of 0.37, meaning that its share price is 63% less volatile than the S&P 500.

Insider & Institutional Ownership

78.4% of Mach Natural Resources shares are owned by institutional investors. Comparatively, 60.3% of Epsilon Energy shares are owned by institutional investors. 87.8% of Mach Natural Resources shares are owned by company insiders. Comparatively, 5.5% of Epsilon Energy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Mach Natural Resources and Epsilon Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mach Natural Resources	0	0	2	1	3.33
Epsilon Energy	0	0	1	1	3.50

Mach Natural Resources presently has a consensus target price of $24.00, indicating a potential upside of 49.68%. Epsilon Energy has a consensus target price of $7.00, indicating a potential upside of 12.72%. Given Mach Natural Resources’ higher possible upside, analysts plainly believe Mach Natural Resources is more favorable than Epsilon Energy.

Earnings & Valuation

This table compares Mach Natural Resources and Epsilon Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mach Natural Resources	$962.51 million	1.72	$346.56 million	N/A	N/A
Epsilon Energy	$30.73 million	4.42	$6.95 million	$0.25	24.84

Mach Natural Resources has higher revenue and earnings than Epsilon Energy.

Dividends

Mach Natural Resources pays an annual dividend of $2.00 per share and has a dividend yield of 12.5%. Epsilon Energy pays an annual dividend of $0.25 per share and has a dividend yield of 4.0%. Epsilon Energy pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Mach Natural Resources and Epsilon Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mach Natural Resources	25.17%	23.58%	12.00%
Epsilon Energy	16.97%	5.31%	4.30%

Summary

Mach Natural Resources beats Epsilon Energy on 11 of the 14 factors compared between the two stocks.

About Mach Natural Resources

Mach Natural Resources LP, an independent upstream oil and gas company, focuses on the acquisition, development, and production of oil, natural gas, and natural gas liquids reserves in the Anadarko Basin region of Western Oklahoma, Southern Kansas, and the panhandle of Texas. It also owns a portfolio of midstream assets, as well as owns plants and water infrastructure. The company was incorporated in 2023 and is headquartered in Oklahoma City, Oklahoma.

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.