Borr Drilling (NYSE:BORR) versus Atlas Energy Solutions (NYSE:AESI) Head to Head Review

Atlas Energy Solutions (NYSE:AESI) and Borr Drilling (NYSE:BORR) are both small-cap energy companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, institutional ownership, earnings and risk.

Analyst Ratings

This is a summary of current recommendations for Atlas Energy Solutions and Borr Drilling, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atlas Energy Solutions	3	3	6	0	2.25
Borr Drilling	2	1	0	2	2.40

Atlas Energy Solutions presently has a consensus target price of $17.10, suggesting a potential upside of 85.67%. Borr Drilling has a consensus target price of $5.27, suggesting a potential upside of 31.50%. Given Atlas Energy Solutions’ higher possible upside, analysts plainly believe Atlas Energy Solutions is more favorable than Borr Drilling.

Insider & Institutional Ownership

34.6% of Atlas Energy Solutions shares are owned by institutional investors. Comparatively, 83.1% of Borr Drilling shares are owned by institutional investors. 16.4% of Atlas Energy Solutions shares are owned by company insiders. Comparatively, 7.9% of Borr Drilling shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Atlas Energy Solutions and Borr Drilling’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Atlas Energy Solutions	-11.08%	-9.57%	-4.84%
Borr Drilling	-23.98%	-5.95%	-1.84%

Valuation & Earnings

This table compares Atlas Energy Solutions and Borr Drilling”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Atlas Energy Solutions	$1.10 billion	1.05	-$50.30 million	($0.95)	-9.69
Borr Drilling	$1.02 billion	1.24	$45.00 million	($0.78)	-5.13

Borr Drilling has lower revenue, but higher earnings than Atlas Energy Solutions. Atlas Energy Solutions is trading at a lower price-to-earnings ratio than Borr Drilling, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Atlas Energy Solutions has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500. Comparatively, Borr Drilling has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500.

Summary

Borr Drilling beats Atlas Energy Solutions on 9 of the 15 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 Borr Drilling

Borr Drilling Limited operates as an offshore shallow-water drilling contractor to the oil and gas industry worldwide. The company owns, contracts, and operates jack-up drilling rigs for operations in shallow-water areas, including the provision of related equipment and work crews to conduct oil and gas drilling and workover operations for exploration and production. It serves oil and gas exploration and production companies, such as integrated oil companies, state-owned national oil companies, and independent oil and gas companies. The company was formerly known as Magni Drilling Limited and changed its name to Borr Drilling Limited in December 2016. Borr Drilling Limited was incorporated in 2016 and is based in Hamilton, Bermuda.