Atlas Energy Solutions (NYSE:AESI) vs. PermRock Royalty Trust (NYSE:PRT) Critical Analysis

Atlas Energy Solutions (NYSE:AESI) and PermRock Royalty Trust (NYSE:PRT) are both small-cap oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, profitability, analyst recommendations, dividends, risk, valuation and institutional ownership.

Earnings & 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	3.08	$105.43 million	$1.80	10.52
PermRock Royalty Trust	$7.19 million	6.48	$6.26 million	$0.42	9.12

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.

Risk & Volatility

Atlas Energy Solutions has a beta of 0.56, indicating that its stock price is 44% 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 Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atlas Energy Solutions	0	0	8	2	3.20
PermRock Royalty Trust	0	0	0	0	N/A

Atlas Energy Solutions presently has a consensus price target of $26.25, indicating a potential upside of 38.67%. Given Atlas Energy Solutions’ higher probable upside, equities research analysts plainly believe Atlas Energy Solutions is more favorable than PermRock Royalty Trust.

Institutional and Insider Ownership

34.6% of Atlas Energy Solutions shares are held by institutional investors. Comparatively, 41.7% of PermRock Royalty Trust shares are held by institutional investors. 24.3% of Atlas Energy Solutions shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

Atlas Energy Solutions pays an annual dividend of $0.64 per share and has a dividend yield of 3.4%. PermRock Royalty Trust pays an annual dividend of $0.48 per share and has a dividend yield of 12.5%. 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.

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%

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.