ARC Resources (OTCMKTS:AETUF) & Atlas Energy Solutions (NYSE:AESI) Critical Contrast

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ARC Resources	$2.98 billion	4.40	$820.37 million	$1.62	13.84
Atlas Energy Solutions	$1.16 billion	1.56	$105.43 million	$0.31	47.29

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.

Institutional and Insider Ownership

2.5% of ARC Resources shares are held by institutional investors. Comparatively, 34.6% of Atlas Energy Solutions shares are held by institutional investors. 0.3% of ARC Resources shares are held by insiders. Comparatively, 16.0% of Atlas Energy Solutions shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for ARC Resources and Atlas Energy Solutions, as reported by MarketBeat.com.

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

Atlas Energy Solutions has a consensus target price of $19.28, suggesting a potential upside of 31.51%. Given Atlas Energy Solutions’ higher probable upside, analysts clearly believe Atlas Energy Solutions is more favorable than ARC Resources.

Risk & Volatility

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

Profitability

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

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

Dividends

ARC Resources pays an annual dividend of $0.52 per share and has a dividend yield of 2.3%. Atlas Energy Solutions pays an annual dividend of $1.00 per share and has a dividend yield of 6.8%. ARC Resources pays out 32.1% of its earnings in the form of a dividend. 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. Atlas Energy Solutions has raised 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 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.

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.