REX American Resources (NYSE:REX – Get Free Report) and Epsilon Energy (NASDAQ:EPSN – Get Free Report) are both small-cap energy companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, dividends, analyst recommendations, profitability, valuation and risk.
Risk and Volatility
REX American Resources has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500. Comparatively, Epsilon Energy has a beta of -0.06, suggesting that its stock price is 106% less volatile than the S&P 500.
Analyst Ratings
This is a summary of recent recommendations and price targets for REX American Resources and Epsilon Energy, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| REX American Resources | 0 | 0 | 1 | 0 | 3.00 |
| Epsilon Energy | 0 | 1 | 0 | 0 | 2.00 |
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| REX American Resources | 18.31% | 16.90% | 15.01% |
| Epsilon Energy | -3.77% | 5.56% | 3.26% |
Institutional & Insider Ownership
88.1% of REX American Resources shares are owned by institutional investors. Comparatively, 60.3% of Epsilon Energy shares are owned by institutional investors. 13.2% of REX American Resources shares are owned by insiders. Comparatively, 28.4% of Epsilon Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares REX American Resources and Epsilon Energy”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| REX American Resources | $650.49 million | 2.22 | $82.95 million | $3.65 | 11.91 |
| Epsilon Energy | $67.66 million | 2.57 | -$5.80 million | ($0.21) | -27.33 |
REX American Resources has higher revenue and earnings than Epsilon Energy. Epsilon Energy is trading at a lower price-to-earnings ratio than REX American Resources, indicating that it is currently the more affordable of the two stocks.
Summary
REX American Resources beats Epsilon Energy on 11 of the 13 factors compared between the two stocks.
About REX American Resources
REX American Resources Corporation, together with its subsidiaries, produces and sells ethanol in the United States. The company also offers corn, distillers grains, ethanol, distillers corn oil, gasoline, and natural gas. In addition, it provides dry distillers grains with solubles, which is used as a protein in animal feed. The company was formerly known as REX Stores Corporation and changed its name to REX American Resources Corporation in 2010. REX American Resources Corporation was founded in 1980 and is headquartered in Dayton, Ohio.
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.
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