Contrasting ARC Resources (OTCMKTS:AETUF) and Atlas Energy Solutions (NYSE:AESI)

Atlas Energy Solutions (NYSE:AESI) and ARC Resources (OTCMKTS:AETUF) are both energy companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.

Profitability

This table compares Atlas Energy Solutions and ARC Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Atlas Energy Solutions	8.78%	11.01%	6.22%
ARC Resources	24.40%	14.48%	8.76%

Analyst Ratings

This is a summary of recent ratings and target prices for Atlas Energy Solutions and ARC Resources, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atlas Energy Solutions	0	6	6	1	2.62
ARC Resources	0	0	3	1	3.25

Atlas Energy Solutions currently has a consensus target price of $19.28, indicating a potential upside of 46.71%. Given Atlas Energy Solutions’ higher possible upside, research analysts clearly believe Atlas Energy Solutions is more favorable than ARC Resources.

Insider & Institutional Ownership

34.6% of Atlas Energy Solutions shares are held by institutional investors. Comparatively, 2.5% of ARC Resources shares are held by institutional investors. 16.0% of Atlas Energy Solutions shares are held by insiders. Comparatively, 0.3% of ARC Resources shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Atlas Energy Solutions and ARC Resources”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Atlas Energy Solutions	$1.16 billion	1.40	$105.43 million	$0.31	42.39
ARC Resources	$2.98 billion	4.25	$820.37 million	$1.62	13.35

ARC Resources has higher revenue and earnings than Atlas Energy Solutions. ARC Resources is trading at a lower price-to-earnings ratio than Atlas Energy Solutions, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Atlas Energy Solutions has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500. Comparatively, ARC Resources has a beta of 0.45, suggesting that its stock price is 55% less volatile than the S&P 500.

Dividends

Atlas Energy Solutions pays an annual dividend of $1.00 per share and has a dividend yield of 7.6%. ARC Resources pays an annual dividend of $0.52 per share and has a dividend yield of 2.4%. Atlas Energy Solutions pays out 322.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. ARC Resources pays out 32.1% of its earnings in the form of a dividend. Atlas Energy Solutions has increased its dividend for 2 consecutive years. Atlas Energy Solutions is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

ARC Resources beats Atlas Energy Solutions on 9 of the 17 factors compared between the two stocks.

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.

About ARC Resources

ARC Resources Ltd. engages in the acquiring and developing crude oil, natural gas, condensate, and natural gas liquids in Canada. It primarily holds interests in the Montney basin located in Alberta and northeast British Columbia. ARC Resources Ltd. was founded in 1996 and is based in Calgary, Canada.