Atlas Energy Solutions (NYSE:AESI – Get Free Report) and PermRock Royalty Trust (NYSE:PRT – Get Free Report) are both oils/energy companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, earnings, analyst recommendations, risk and valuation.
Profitability
This table compares Atlas Energy Solutions and PermRock Royalty Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Atlas Energy Solutions | 19.98% | 29.56% | 10.14% |
| PermRock Royalty Trust | 84.70% | 6.74% | 6.62% |
Earnings and Valuation
This table compares Atlas Energy Solutions and PermRock Royalty Trust’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Atlas Energy Solutions | $613.96 million | 3.39 | $105.43 million | $1.80 | 11.55 |
| PermRock Royalty Trust | $7.19 million | 6.82 | $6.26 million | $0.42 | 9.60 |
Atlas Energy Solutions has higher revenue and earnings than PermRock Royalty Trust. PermRock Royalty Trust 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.
Insider & Institutional Ownership
34.6% of Atlas Energy Solutions shares are owned by institutional investors. Comparatively, 41.7% of PermRock Royalty Trust shares are owned by institutional investors. 24.3% 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 stock will outperform the market over the long term.
Volatility and Risk
Atlas Energy Solutions has a beta of 0.58, indicating that its stock price is 42% less volatile than the S&P 500. Comparatively, PermRock Royalty Trust has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current recommendations and price targets for Atlas Energy Solutions and PermRock Royalty Trust, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Atlas Energy Solutions | 0 | 0 | 9 | 2 | 3.18 |
| PermRock Royalty Trust | 0 | 0 | 0 | 0 | N/A |
Atlas Energy Solutions presently has a consensus target price of $25.89, suggesting a potential upside of 24.53%. Given Atlas Energy Solutions’ higher probable upside, research analysts clearly believe Atlas Energy Solutions is more favorable than PermRock Royalty Trust.
Dividends
Atlas Energy Solutions pays an annual dividend of $0.64 per share and has a dividend yield of 3.1%. PermRock Royalty Trust pays an annual dividend of $0.48 per share and has a dividend yield of 11.9%. Atlas Energy Solutions pays out 35.6% of its earnings in the form of a dividend. PermRock Royalty Trust pays out 114.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Summary
Atlas Energy Solutions beats PermRock Royalty Trust on 11 of the 16 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 PermRock Royalty Trust
PermRock Royalty Trust operates as a statutory trust. It owns interests in the oil and natural gas producing properties. The company’s underlying properties include 22,394 net acres in the Permian Basin. The company was founded in 2017 and is based in Dallas, Texas.
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