Critical Analysis: SunCoke Energy Partners, L.P. (SXCP) vs. The Competition

SunCoke Energy Partners, L.P. (NYSE: SXCP) is one of 28 publicly-traded companies in the “Steel” industry, but how does it compare to its rivals? We will compare SunCoke Energy Partners, L.P. to related companies based on the strength of its analyst recommendations, earnings, risk, dividends, institutional ownership, profitability and valuation.

Profitability

This table compares SunCoke Energy Partners, L.P. and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SunCoke Energy Partners, L.P. -9.52% 14.02% 5.44%
SunCoke Energy Partners, L.P. Competitors -1,550.91% 3.59% 2.20%

Analyst Recommendations

This is a breakdown of current recommendations for SunCoke Energy Partners, L.P. and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SunCoke Energy Partners, L.P. 0 0 1 0 3.00
SunCoke Energy Partners, L.P. Competitors 289 834 944 29 2.34

SunCoke Energy Partners, L.P. currently has a consensus price target of $19.00, suggesting a potential upside of 8.57%. As a group, “Steel” companies have a potential upside of 6.92%. Given SunCoke Energy Partners, L.P.’s stronger consensus rating and higher probable upside, equities analysts clearly believe SunCoke Energy Partners, L.P. is more favorable than its rivals.

Valuation & Earnings

This table compares SunCoke Energy Partners, L.P. and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
SunCoke Energy Partners, L.P. $800.00 million $218.50 million -9.36
SunCoke Energy Partners, L.P. Competitors $7.78 billion $1.01 billion 34.93

SunCoke Energy Partners, L.P.’s rivals have higher revenue and earnings than SunCoke Energy Partners, L.P.. SunCoke Energy Partners, L.P. is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Insider & Institutional Ownership

15.7% of SunCoke Energy Partners, L.P. shares are held by institutional investors. Comparatively, 58.1% of shares of all “Steel” companies are held by institutional investors. 7.6% of shares of all “Steel” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

SunCoke Energy Partners, L.P. has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500. Comparatively, SunCoke Energy Partners, L.P.’s rivals have a beta of 1.37, suggesting that their average share price is 37% more volatile than the S&P 500.

Dividends

SunCoke Energy Partners, L.P. pays an annual dividend of $2.38 per share and has a dividend yield of 13.6%. SunCoke Energy Partners, L.P. pays out -127.3% of its earnings in the form of a dividend. As a group, “Steel” companies pay a dividend yield of 2.1% and pay out 60.2% of their earnings in the form of a dividend. SunCoke Energy Partners, L.P. is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Summary

SunCoke Energy Partners, L.P. beats its rivals on 8 of the 14 factors compared.

SunCoke Energy Partners, L.P. Company Profile

SunCoke Energy Partners, L.P. is engaged in the production of coke used in the blast furnace production of steel. As of December 31, 2016, the Company owned a 98% interest in Haverhill Coke Company LLC (Haverhill), Middletown Coke Company, LLC (Middletown), and Gateway Energy and Coke Company, LLC (Granite City). The Company’s segments include Domestic Coke, which consists of the Haverhill, Middletown and Granite City cokemaking and heat recovery operations located in Franklin Furnace, Ohio; Middletown, Ohio, and Granite City, Illinois, respectively, and Coal Logistics, which consists of the Company’s Convent Marine Terminal, Kanawha River Terminals, LLC and SunCoke Lake Terminal, LLC (Lake Terminal) coal handling and/or mixing service operations in Convent, Louisiana; Ceredo and Belle, West Virginia, and East Chicago, Indiana, respectively. It also provides coal handling and/or mixing services at its Coal Logistics terminals to steel, coke, electric utility and coal mining customers.

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