Alliance Resource Partners (NASDAQ: ARLP) and CONSOL Coal Resources (NYSE:CCR) are both energy companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, dividends, valuation, analyst recommendations, institutional ownership, risk and profitability.
Insider and Institutional Ownership
14.4% of Alliance Resource Partners shares are held by institutional investors. Comparatively, 25.6% of CONSOL Coal Resources shares are held by institutional investors. 44.0% of Alliance Resource Partners shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This is a breakdown of current recommendations for Alliance Resource Partners and CONSOL Coal Resources, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Alliance Resource Partners||0||1||3||0||2.75|
|CONSOL Coal Resources||0||2||5||0||2.71|
Alliance Resource Partners currently has a consensus price target of $26.33, suggesting a potential upside of 26.60%. CONSOL Coal Resources has a consensus price target of $20.20, suggesting a potential upside of 26.25%. Given Alliance Resource Partners’ stronger consensus rating and higher possible upside, research analysts clearly believe Alliance Resource Partners is more favorable than CONSOL Coal Resources.
Valuation & Earnings
This table compares Alliance Resource Partners and CONSOL Coal Resources’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Alliance Resource Partners||$1.93 billion||1.41||$339.39 million||$3.84||5.42|
|CONSOL Coal Resources||$281.12 million||1.55||$25.85 million||$1.38||11.59|
Alliance Resource Partners has higher revenue and earnings than CONSOL Coal Resources. Alliance Resource Partners is trading at a lower price-to-earnings ratio than CONSOL Coal Resources, indicating that it is currently the more affordable of the two stocks.
This table compares Alliance Resource Partners and CONSOL Coal Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Alliance Resource Partners||18.96%||31.11%||16.14%|
|CONSOL Coal Resources||9.94%||21.14%||6.62%|
Alliance Resource Partners pays an annual dividend of $2.02 per share and has a dividend yield of 9.7%. CONSOL Coal Resources pays an annual dividend of $2.05 per share and has a dividend yield of 12.8%. Alliance Resource Partners pays out 52.6% of its earnings in the form of a dividend. CONSOL Coal Resources pays out 148.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Alliance Resource Partners beats CONSOL Coal Resources on 10 of the 15 factors compared between the two stocks.
Alliance Resource Partners Company Profile
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.
CONSOL Coal Resources Company Profile
Consol Coal Resources LP, formerly CNX Coal Resources LP, is a producer of high-British thermal units (Btu) thermal coal. 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.
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