Natural Resource Partners (NRP) vs. Its Competitors Critical Contrast

Natural Resource Partners (NYSE: NRP) is one of 30 public companies in the “Coal” industry, but how does it compare to its peers? We will compare Natural Resource Partners to similar companies based on the strength of its institutional ownership, profitability, valuation, dividends, analyst recommendations, earnings and risk.

Institutional and Insider Ownership

20.3% of Natural Resource Partners shares are held by institutional investors. Comparatively, 44.4% of shares of all “Coal” companies are held by institutional investors. 39.0% of Natural Resource Partners shares are held by insiders. Comparatively, 22.2% of shares of all “Coal” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Natural Resource Partners and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Natural Resource Partners 26.38% 34.32% 4.38%
Natural Resource Partners Competitors -228.19% 7.48% 2.60%

Analyst Recommendations

This is a summary of current ratings for Natural Resource Partners and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Natural Resource Partners 0 1 0 0 2.00
Natural Resource Partners Competitors 189 640 1017 18 2.46

Natural Resource Partners presently has a consensus target price of $31.00, indicating a potential upside of 21.57%. As a group, “Coal” companies have a potential upside of 31.65%. Given Natural Resource Partners’ peers stronger consensus rating and higher possible upside, analysts plainly believe Natural Resource Partners has less favorable growth aspects than its peers.

Dividends

Natural Resource Partners pays an annual dividend of $1.80 per share and has a dividend yield of 7.1%. Natural Resource Partners pays out 72.0% of its earnings in the form of a dividend. As a group, “Coal” companies pay a dividend yield of 8.3% and pay out 77.5% of their earnings in the form of a dividend.

Volatility & Risk

Natural Resource Partners has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500. Comparatively, Natural Resource Partners’ peers have a beta of 0.92, meaning that their average stock price is 8% less volatile than the S&P 500.

Valuation & Earnings

This table compares Natural Resource Partners and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Natural Resource Partners $400.06 million $96.89 million 10.20
Natural Resource Partners Competitors $934.53 million -$31.41 million -13.00

Natural Resource Partners’ peers have higher revenue, but lower earnings than Natural Resource Partners. Natural Resource Partners is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

Natural Resource Partners peers beat Natural Resource Partners on 8 of the 15 factors compared.

Natural Resource Partners Company Profile

Natural Resource Partners L.P. owns, operates, manages and leases a portfolio of mineral properties in the United States, including interests in coal, trona and soda ash, construction aggregates and other natural resources. Coal Royalty and Other segment consists primarily of coal royalty and coal related transportation and processing assets. As of December 31, 2016, Soda Ash segment included the Company’s 49% non-controlling equity interest in Ciner Wyoming, a trona ore mining operation and soda ash refinery in the Green River Basin, Wyoming. VantaCore’s operating businesses include Laurel Aggregates, located in Lake Lynn, Pennsylvania; Winn Materials/McIntosh Construction, located in Clarksville, Tennessee; Grand Rivers, located in Grand Rivers, Kentucky, and Southern Aggregates, located near Baton Rouge, Louisiana.

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