Epsilon Energy (TSE:EPS) and Peyto Exploration & Development (TSE:PEY) are both small-cap energy companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, analyst recommendations, earnings and profitability.
Analyst Ratings
This is a summary of recent ratings for Epsilon Energy and Peyto Exploration & Development, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Epsilon Energy | 0 | 0 | 0 | 0 | N/A |
Peyto Exploration & Development | 0 | 6 | 3 | 0 | 2.33 |
Peyto Exploration & Development has a consensus target price of C$6.33, suggesting a potential upside of 22.10%.
Dividends
Epsilon Energy pays an annual dividend of C$0.97 per share. Peyto Exploration & Development pays an annual dividend of C$0.09 per share and has a dividend yield of 1.7%. Epsilon Energy pays out 801.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Peyto Exploration & Development pays out -41.7% of its earnings in the form of a dividend. Peyto Exploration & Development is clearly the better dividend stock, given its higher yield and lower payout ratio.
Valuation and Earnings
This table compares Epsilon Energy and Peyto Exploration & Development's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Epsilon Energy | C$24.69 million | 0.00 | C$3.31 million | C$0.12 | N/A |
Peyto Exploration & Development | C$378.24 million | 2.29 | C$-35,627,256.00 | C($0.22) | -24.35 |
Epsilon Energy has higher earnings, but lower revenue than Peyto Exploration & Development. Peyto Exploration & Development is trading at a lower price-to-earnings ratio than Epsilon Energy, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Epsilon Energy and Peyto Exploration & Development's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Epsilon Energy | N/A | N/A | N/A |
Peyto Exploration & Development | N/A | N/A | N/A |
Summary
Peyto Exploration & Development beats Epsilon Energy on 4 of the 7 factors compared between the two stocks.