CNX Coal Resources (NYSE: CNXC) and Cloud Peak Energy (NYSE:CLD) are both small-cap oils/energy companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, institutional ownership, analyst recommendations and profitability.
Volatility & Risk
CNX Coal Resources has a beta of 1.51, suggesting that its stock price is 51% more volatile than the S&P 500. Comparatively, Cloud Peak Energy has a beta of 1.42, suggesting that its stock price is 42% more volatile than the S&P 500.
This is a summary of recent ratings and target prices for CNX Coal Resources and Cloud Peak 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|
|Cloud Peak Energy||0||7||2||0||2.22|
CNX Coal Resources presently has a consensus price target of $21.60, indicating a potential upside of 41.18%. Cloud Peak Energy has a consensus price target of $5.29, indicating a potential upside of 76.19%. Given Cloud Peak Energy’s higher probable upside, analysts clearly believe Cloud Peak Energy is more favorable than CNX Coal Resources.
CNX Coal Resources pays an annual dividend of $2.05 per share and has a dividend yield of 13.4%. Cloud Peak 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.
Valuation and Earnings
This table compares CNX Coal Resources and Cloud Peak Energy’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|CNX Coal Resources||$316.77 million||1.13||$95.25 million||$1.52||10.07|
|Cloud Peak Energy||$841.33 million||0.27||$118.87 million||($0.03)||-99.97|
Cloud Peak Energy has higher revenue and earnings than CNX Coal Resources. Cloud Peak 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.
This table compares CNX Coal Resources and Cloud Peak 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%|
|Cloud Peak Energy||-0.47%||0.54%||0.31%|
Institutional & Insider Ownership
60.8% of CNX Coal Resources shares are held by institutional investors. Comparatively, 81.1% of Cloud Peak Energy shares are held by institutional investors. 2.5% of Cloud Peak Energy shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
CNX Coal Resources beats Cloud Peak Energy on 9 of the 16 factors compared between the two stocks.
CNX Coal Resources Company Profile
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.
Cloud Peak Energy Company Profile
Cloud Peak Energy Inc. is a producer of coal in the United States of America and the Powder River Basin (PRB). In the PRB, the Company owns and operates three surface coal mines: the Antelope Mine, the Cordero Rojo Mine and the Spring Creek Mine. Its segments include Owned and Operated Mines, and Logistics and Related Activities. Its Owned and Operated Mines segment includes its Antelope Mine, Cordero Rojo Mine, and Spring Creek Mine. The Logistics and Related Activities segment includes the services it provides to its international and certain of its domestic customers where it delivers coal to the customer at a terminal or the customer’s plant or other delivery point, remote from its mine site. As of December 31, 2016, the Company also operated two development projects, both located in the Northern PRB: Youngs Creek Project and Big Metal Project. The Company’s Antelope Mine and Cordero Rojo Mine are located in Wyoming and its Spring Creek Mine is located in Montana.
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