Reviewing Epsilon Energy (NASDAQ:EPSN) and Sable Offshore (NYSE:SOC)

Sable Offshore (NYSE:SOC) and Epsilon Energy (NASDAQ:EPSN) are both small-cap oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, risk, dividends and analyst recommendations.

Analyst Recommendations

This is a summary of current recommendations for Sable Offshore and Epsilon Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sable Offshore	0	0	1	0	3.00
Epsilon Energy	0	0	0	0	N/A

Sable Offshore presently has a consensus price target of $20.00, indicating a potential upside of 88.86%. Given Sable Offshore’s higher probable upside, equities research analysts clearly believe Sable Offshore is more favorable than Epsilon Energy.

Profitability

This table compares Sable Offshore and Epsilon Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sable Offshore	N/A	N/A	-42.39%
Epsilon Energy	22.60%	6.81%	5.67%

Earnings and Valuation

This table compares Sable Offshore and Epsilon Energy’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sable Offshore	N/A	N/A	-$32.18 million	N/A	N/A
Epsilon Energy	$30.73 million	3.87	$6.95 million	$0.31	17.52

Epsilon Energy has higher revenue and earnings than Sable Offshore.

Insider & Institutional Ownership

26.2% of Sable Offshore shares are owned by institutional investors. Comparatively, 60.3% of Epsilon Energy shares are owned by institutional investors. 14.3% of Sable Offshore 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 large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Sable Offshore has a beta of 0.03, indicating that its share price is 97% less volatile than the S&P 500. Comparatively, Epsilon Energy has a beta of 0.37, indicating that its share price is 63% less volatile than the S&P 500.

Summary

Epsilon Energy beats Sable Offshore on 7 of the 10 factors compared between the two stocks.

About Sable Offshore

Sable Offshore Corp. engages in the oil and gas exploration and development activities in the United States. It operates through three platforms located offshore California and an onshore processing facility comprised of 16 federal leases across approximately 76,000 acres. The company was formerly known as Flame Acquisition Corp. and changed its name to Sable Offshore Corp. in February 2024. Sable Offshore Corp. was incorporated in 2020 and is based in Houston, Texas.

About Epsilon Energy

Epsilon Energy Ltd., a 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 Houston, Texas.