Contrasting Alliance Resource Partners, L.P. (ARLP) & CONSOL Energy (CNX)

Alliance Resource Partners, L.P. (NASDAQ: ARLP) and CONSOL Energy (NYSE:CNX) are both oils/energy companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, risk, earnings, profitability, valuation and analyst recommendations.

Volatility & Risk

Alliance Resource Partners, L.P. has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500. Comparatively, CONSOL Energy has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500.

Institutional & Insider Ownership

28.4% of Alliance Resource Partners, L.P. shares are owned by institutional investors. 44.0% of Alliance Resource Partners, L.P. shares are owned by company insiders. Comparatively, 1.5% of CONSOL Energy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Alliance Resource Partners, L.P. and CONSOL Energy, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alliance Resource Partners, L.P. 0 1 3 0 2.75
CONSOL Energy 0 4 4 0 2.50

Alliance Resource Partners, L.P. currently has a consensus price target of $27.75, indicating a potential upside of 49.60%. CONSOL Energy has a consensus price target of $22.14, indicating a potential upside of 55.39%. Given CONSOL Energy’s higher possible upside, analysts clearly believe CONSOL Energy is more favorable than Alliance Resource Partners, L.P..

Profitability

This table compares Alliance Resource Partners, L.P. and CONSOL Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Alliance Resource Partners, L.P. 19.47% 34.60% 17.36%
CONSOL Energy -5.42% 1.09% 0.48%

Dividends

Alliance Resource Partners, L.P. pays an annual dividend of $2.00 per share and has a dividend yield of 10.8%. CONSOL Energy does not pay a dividend. Alliance Resource Partners, L.P. pays out 48.4% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Alliance Resource Partners, L.P. and CONSOL Energy’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Alliance Resource Partners, L.P. N/A N/A N/A $4.13 4.49
CONSOL Energy $2.37 billion 1.38 $678.95 million ($0.66) -21.59

CONSOL Energy has higher revenue and earnings than Alliance Resource Partners, L.P.. CONSOL Energy is trading at a lower price-to-earnings ratio than Alliance Resource Partners, L.P., indicating that it is currently the more affordable of the two stocks.

Summary

Alliance Resource Partners, L.P. beats CONSOL Energy on 8 of the 13 factors compared between the two stocks.

About Alliance Resource Partners, L.P.

Alliance Resource Partners, L.P. is a producer and marketer of coal primarily to the United States utilities and industrial users. The Company operates through segments, including Illinois Basin, Appalachia, and Other and Corporate. The Illinois Basin segment consists of various operating segments, including Webster County Coal, LLC’s Dotiki mining complex, Gibson County Coal, LLC’s mining complex, which includes the Gibson North mine and Gibson South mine, Hopkins County Coal, LLC’s mining complex, which includes the Elk Creek mine, the Pleasant View surface mineable reserves and the Fies property, White County Coal, LLC’s, Pattiki mining complex, Warrior Coal, LLC’s mining complex, Sebree Mining, LLC’s mining complex, which includes the Onton mine and River View Coal, LLC mining complex. The Appalachia segment consists of multiple operating segments, including the Mettiki mining complex, the Tunnel Ridge mining complex and the MC Mining mining complex.

About CONSOL Energy

CONSOL Energy Inc. (CONSOL Energy) is an integrated energy company. The Company’s divisions include Exploration and Production (E&P), Pennsylvania (PA) Mining Operations and Other. The E&P division operates through four segments: Marcellus Shale, Utica Shale, Coalbed Methane (CBM) and Other Gas, which produce pipeline quality natural gas for sale primarily to gas wholesalers. Its E&P division focuses on Appalachian area natural gas and liquids activities, including production, gathering, processing and acquisition of natural gas properties in the Appalachian Basin. The Other Gas segment is primarily related to shallow oil and gas production and the Chattanooga Shale in Tennessee. The principal activities of the PA Mining Operations division are mining, preparation and marketing of thermal coal, sold primarily to power generators. The Other division includes business activities, such as coal terminal operations and water operations.

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