Contrasting Innovex International (NYSE:INVX) and Atlas Energy Solutions (NYSE:AESI)

Innovex International (NYSE:INVX) and Atlas Energy Solutions (NYSE:AESI) are both energy companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, risk, earnings, profitability, analyst recommendations, dividends and valuation.

Analyst Recommendations

This is a summary of recent ratings for Innovex International and Atlas Energy Solutions, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Innovex International	0	3	2	1	2.67
Atlas Energy Solutions	3	3	4	0	2.10

Innovex International presently has a consensus target price of $32.75, suggesting a potential upside of 10.03%. Atlas Energy Solutions has a consensus target price of $17.12, suggesting a potential upside of 22.37%. Given Atlas Energy Solutions’ higher probable upside, analysts plainly believe Atlas Energy Solutions is more favorable than Innovex International.

Insider and Institutional Ownership

34.6% of Atlas Energy Solutions shares are held by institutional investors. 34.9% of Innovex International shares are held by company insiders. Comparatively, 16.4% of Atlas Energy Solutions shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Innovex International has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500. Comparatively, Atlas Energy Solutions has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Innovex International	$978.25 million	2.13	$83.30 million	$0.89	33.44
Atlas Energy Solutions	$1.07 billion	1.64	-$50.30 million	($0.95)	-14.73

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Innovex International	6.17%	7.12%	5.80%
Atlas Energy Solutions	-11.08%	-9.57%	-4.84%

Summary

Innovex International beats Atlas Energy Solutions on 10 of the 15 factors compared between the two stocks.

About Innovex International

Innovex International, Inc. engages in the provision of solutions for both onshore and offshore applications within the oil and gas industry. The company was founded on September 15, 2016 and is headquartered in Humble, TX.

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.