Borr Drilling (NYSE:BORR – Get Free Report) and Atlas Energy Solutions (NYSE:AESI – Get Free Report) are both small-cap energy companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.
Institutional & Insider Ownership
83.1% of Borr Drilling shares are owned by institutional investors. Comparatively, 34.6% of Atlas Energy Solutions shares are owned by institutional investors. 7.9% of Borr Drilling shares are owned by insiders. Comparatively, 16.4% of Atlas Energy Solutions shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Borr Drilling and Atlas Energy Solutions”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Borr Drilling | $1.02 billion | 1.24 | $45.00 million | ($0.78) | -5.13 |
| Atlas Energy Solutions | $1.10 billion | 1.05 | -$50.30 million | ($0.95) | -9.69 |
Borr Drilling has higher earnings, but lower revenue than Atlas Energy Solutions. Atlas Energy Solutions is trading at a lower price-to-earnings ratio than Borr Drilling, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Borr Drilling has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500. Comparatively, Atlas Energy Solutions has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Borr Drilling and Atlas Energy Solutions, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Borr Drilling | 2 | 1 | 0 | 2 | 2.40 |
| Atlas Energy Solutions | 3 | 3 | 6 | 0 | 2.25 |
Borr Drilling presently has a consensus target price of $5.27, indicating a potential upside of 31.50%. Atlas Energy Solutions has a consensus target price of $17.10, indicating a potential upside of 85.67%. Given Atlas Energy Solutions’ higher possible upside, analysts plainly believe Atlas Energy Solutions is more favorable than Borr Drilling.
Profitability
This table compares Borr Drilling and Atlas Energy Solutions’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Borr Drilling | -23.98% | -5.95% | -1.84% |
| Atlas Energy Solutions | -11.08% | -9.57% | -4.84% |
Summary
Borr Drilling beats Atlas Energy Solutions on 9 of the 15 factors compared between the two stocks.
About Borr Drilling
Borr Drilling Limited operates as an offshore shallow-water drilling contractor to the oil and gas industry worldwide. The company owns, contracts, and operates jack-up drilling rigs for operations in shallow-water areas, including the provision of related equipment and work crews to conduct oil and gas drilling and workover operations for exploration and production. It serves oil and gas exploration and production companies, such as integrated oil companies, state-owned national oil companies, and independent oil and gas companies. The company was formerly known as Magni Drilling Limited and changed its name to Borr Drilling Limited in December 2016. Borr Drilling Limited was incorporated in 2016 and is based in Hamilton, Bermuda.
About Atlas Energy Solutions
Atlas Energy Solutions Inc. engages in the production, processing, and sale of mesh and sand that are used as a proppant during the well completion process in the Permian Basin of Texas and New Mexico. The company provides transportation and logistics, storage solutions, and contract labor services. It sells its products and services to oil and natural gas exploration and production companies, and oilfield services companies. Atlas Energy Solutions Inc. was founded in 2017 and is headquartered in Austin, Texas.
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