Analyzing Foresight Energy (FELP) & CNX Coal Resources (CNXC)

CNX Coal Resources (NYSE: CNXC) and Foresight Energy (NYSE:FELP) are both small-cap oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for CNX Coal Resources and Foresight Energy, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CNX Coal Resources 0 1 5 0 2.83
Foresight Energy 0 1 0 0 2.00

CNX Coal Resources presently has a consensus target price of $21.60, suggesting a potential upside of 36.71%. Foresight Energy has a consensus target price of $5.25, suggesting a potential upside of 17.71%. Given CNX Coal Resources’ stronger consensus rating and higher possible upside, research analysts clearly believe CNX Coal Resources is more favorable than Foresight Energy.

Institutional & Insider Ownership

60.8% of CNX Coal Resources shares are owned by institutional investors. Comparatively, 11.5% of Foresight Energy shares are owned by institutional investors. 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.

Profitability

This table compares CNX Coal Resources and Foresight Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CNX Coal Resources 11.26% 22.89% 7.21%
Foresight Energy -20.46% -34.99% -3.18%

Risk and Volatility

CNX Coal Resources has a beta of 1.51, suggesting that its share price is 51% more volatile than the S&P 500. Comparatively, Foresight Energy has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500.

Dividends

CNX Coal Resources pays an annual dividend of $2.05 per share and has a dividend yield of 13.0%. Foresight Energy does not pay a dividend. CNX Coal Resources pays out 134.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings & Valuation

This table compares CNX Coal Resources and Foresight Energy’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
CNX Coal Resources $316.77 million 1.16 $95.25 million $1.52 10.39
Foresight Energy $940.14 million 0.67 $180.74 million ($1.81) -2.46

Foresight Energy has higher revenue and earnings than CNX Coal Resources. Foresight Energy is trading at a lower price-to-earnings ratio than CNX Coal Resources, indicating that it is currently the more affordable of the two stocks.

Summary

CNX Coal Resources beats Foresight Energy on 11 of the 14 factors compared between the two stocks.

About CNX Coal Resources

CNX Coal Resources LP is a producer of high-British thermal units (Btu) thermal coal in the Northern Appalachian Basin and the eastern United States. It is engaged in the management and development of coal operations of CONSOL Energy Inc. (CONSOL Energy) in Pennsylvania. It holds interest in, and operational control over, CONSOL Energy’s Pennsylvania Mining Complex, which consists of three underground mines and related infrastructure that produce high-Btu bituminous thermal coal that is sold primarily to electric utilities in the eastern United States. The Pennsylvania Mining Complex includes the Bailey Mine, the Enlow Fork Mine and the Harvey Mine. It mines its reserves from the Pittsburgh Number eight Coal Seam, which is a contiguous formation of uniform, Btu thermal coal. Its Bailey Mine is located in Enon, Pennsylvania. Its Enlow Fork Mine is located directly north of the Bailey Mine. Its Harvey Mine is located directly east of the Bailey and Enlow Fork Mines.

About Foresight Energy

Foresight Energy LP is engaged in the mining and marketing of coal from reserves and operations located in the Illinois Basin. As of December 31, 2016, the Company controlled 2.1 billion tons of coal in the state of Illinois. Its reserves consist principally of three contiguous blocks of uniform, thick, high heat content (high Btu) thermal coal, which are used for longwall operations. The Company operates four underground mining complexes in the Illinois Basin, including Williamson, Sugar Camp, Hillsboro and Macoupin. Its mining complexes operate in the Illinois Basin with approximately two located in Southern Illinois and over two located in Central Illinois. Williamson, Sugar Camp and Hillsboro are longwall operations, and Macoupin is a continuous miner operation. The Company markets and sells its coal to electric utility and industrial companies in the eastern half of the United States as well as internationally (primarily into Europe).

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