Reviewing Atlas Energy Solutions (NYSE:AESI) & Tetra Technologies (NYSE:TTI)

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

Volatility and Risk

Tetra Technologies has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500. Comparatively, Atlas Energy Solutions has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500.

Institutional & Insider Ownership

70.2% of Tetra Technologies shares are owned by institutional investors. Comparatively, 34.6% of Atlas Energy Solutions shares are owned by institutional investors. 6.3% of Tetra Technologies shares are owned by insiders. Comparatively, 16.4% of Atlas Energy Solutions shares are owned 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.

Valuation and Earnings

This table compares Tetra Technologies and Atlas Energy Solutions”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tetra Technologies	$630.93 million	1.61	$3.01 million	$0.04	172.00
Atlas Energy Solutions	$1.10 billion	1.54	-$50.30 million	($0.95)	-14.17

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tetra Technologies	0.97%	9.11%	4.14%
Atlas Energy Solutions	-11.08%	-9.57%	-4.84%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Tetra Technologies and Atlas Energy Solutions, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tetra Technologies	0	2	3	0	2.60
Atlas Energy Solutions	3	3	4	0	2.10

Tetra Technologies presently has a consensus price target of $11.50, suggesting a potential upside of 67.15%. Atlas Energy Solutions has a consensus price target of $17.12, suggesting a potential upside of 27.23%. Given Tetra Technologies’ stronger consensus rating and higher possible upside, analysts plainly believe Tetra Technologies is more favorable than Atlas Energy Solutions.

Summary

Tetra Technologies beats Atlas Energy Solutions on 11 of the 14 factors compared between the two stocks.

About Tetra Technologies

TETRA Technologies, Inc., together with its subsidiaries, operates as an energy services and solutions company. It operates through two segments, Completion Fluids & Products Division and Water & Flowback Services. The Completion Fluids & Products segment manufactures and markets clear brine fluids, additives, and associated products and services to the oil and gas industry for use in well drilling, completion, and workover operations in the United States, as well as in Latin America, Europe, Asia, the Middle East, and Africa. This segment also markets liquid and dry calcium chloride products; and TETRA PureFlow ultra-pure zinc bromide to battery technology companies. The Water & Flowback Services segment provides water management services for onshore oil and gas operators. This segment also offers frac flowback, production well testing, and other associated services in oil and gas producing regions in the United States, as well as in various basins in Latin America, Africa, Europe, and the Middle East. TETRA Technologies, Inc. was incorporated in 1981 and is headquartered in The Woodlands, Texas.

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.