Epsilon Energy (NASDAQ:EPSN – Get Free Report) and Alto Ingredients (NASDAQ:ALTO – Get Free Report) are both small-cap energy companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, dividends, earnings, valuation, profitability, risk and institutional ownership.
Insider & Institutional Ownership
60.3% of Epsilon Energy shares are held by institutional investors. Comparatively, 42.4% of Alto Ingredients shares are held by institutional investors. 28.4% of Epsilon Energy shares are held by insiders. Comparatively, 4.3% of Alto Ingredients shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of current ratings for Epsilon Energy and Alto Ingredients, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Epsilon Energy | 0 | 1 | 0 | 0 | 2.00 |
| Alto Ingredients | 0 | 2 | 1 | 0 | 2.33 |
Profitability
This table compares Epsilon Energy and Alto Ingredients’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Epsilon Energy | -3.77% | 5.56% | 3.26% |
| Alto Ingredients | 5.51% | 18.54% | 11.61% |
Valuation & Earnings
This table compares Epsilon Energy and Alto Ingredients”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Epsilon Energy | $67.66 million | 2.65 | -$5.80 million | ($0.21) | -28.24 |
| Alto Ingredients | $943.33 million | 0.31 | $13.34 million | $0.67 | 5.57 |
Alto Ingredients has higher revenue and earnings than Epsilon Energy. Epsilon Energy is trading at a lower price-to-earnings ratio than Alto Ingredients, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Epsilon Energy has a beta of -0.19, meaning that its stock price is 119% less volatile than the S&P 500. Comparatively, Alto Ingredients has a beta of 0.16, meaning that its stock price is 84% less volatile than the S&P 500.
Summary
Alto Ingredients beats Epsilon Energy on 11 of the 14 factors compared between the two stocks.
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.
About Alto Ingredients
Alto Ingredients, Inc. produces, distributes, and markets specialty alcohols, renewable fuel, and essential ingredients in the United States. The company operates in three segments: Marketing and Distribution, Pekin Campus Production, and Western Production. It offers specialty alcohols used in mouthwash, cosmetics, pharmaceuticals, hand sanitizers, disinfectants, and cleaners for health, home, and beauty markets; grain neutral spirits used in alcoholic beverages and vinegar, as well as corn germ used in corn oils in the food and beverage markets; alcohols and other products for paint applications and fertilizers in the industrial and agriculture markets; and essential ingredients include dried yeast, corn protein meal, corn protein feed, distiller's grains, and liquid feed for commercial animal feed and pet food applications, as well as yeast for human consumption. The company also provides fuel-grade ethanol used as transportation fuel and distillers corn oil used as a biodiesel feedstock, as well as fuel-grade ethanol produced by third parties. In addition, it offers transportation, storage, and delivery services through third-party service providers. The company sells ethanol to integrated oil companies and gasoline marketers; essential ingredient feed products to dairies and feedlots; and corn oil to poultry, renewable diesel, and biodiesel customers. It operates alcohol production facilities. The company was formerly known as Pacific Ethanol, Inc. and changed its name to Alto Ingredients, Inc. in January 2021. Alto Ingredients, Inc. was founded in 2003 and is headquartered in Pekin, Illinois.
Receive News & Ratings for Epsilon Energy Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Epsilon Energy and related companies with MarketBeat.com's FREE daily email newsletter.
