Analyzing NACCO Industries (NC) & Its Rivals

NACCO Industries (NYSE: NC) is one of 33 publicly-traded companies in the “Coal” industry, but how does it contrast to its competitors? We will compare NACCO Industries to similar companies based on the strength of its risk, analyst recommendations, dividends, earnings, valuation, institutional ownership and profitability.

Volatility & Risk

NACCO Industries has a beta of 0.43, suggesting that its stock price is 57% less volatile than the S&P 500. Comparatively, NACCO Industries’ competitors have a beta of 0.89, suggesting that their average stock price is 11% less volatile than the S&P 500.

Profitability

This table compares NACCO Industries and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NACCO Industries 6.75% 18.54% 7.13%
NACCO Industries Competitors -210.54% 6.48% 2.15%

Dividends

NACCO Industries pays an annual dividend of $1.98 per share and has a dividend yield of 4.8%. NACCO Industries pays out 30.6% of its earnings in the form of a dividend. As a group, “Coal” companies pay a dividend yield of 7.6% and pay out 74.4% of their earnings in the form of a dividend.

Institutional and Insider Ownership

48.4% of NACCO Industries shares are held by institutional investors. Comparatively, 42.2% of shares of all “Coal” companies are held by institutional investors. 30.6% of NACCO Industries 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 large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for NACCO Industries and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NACCO Industries 0 0 0 0 N/A
NACCO Industries Competitors 219 672 1067 23 2.45

As a group, “Coal” companies have a potential upside of 24.79%. Given NACCO Industries’ competitors higher possible upside, analysts clearly believe NACCO Industries has less favorable growth aspects than its competitors.

Valuation and Earnings

This table compares NACCO Industries and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
NACCO Industries $856.44 million $29.60 million 6.30
NACCO Industries Competitors $875.13 million $68.71 million 233.62

NACCO Industries’ competitors have higher revenue and earnings than NACCO Industries. NACCO Industries is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

NACCO Industries Company Profile

NACCO Industries, Inc. is a holding company. The Company’s principal business includes mining. The Company operates through the NACoal segment. The Company’s subsidiary includes The North American Coal Corporation (NACoal). The Company’s NACoal segment mines coal for use in power generation and provides mining services for other natural resources companies. Coal is surface mined from NACoal’s mines in North Dakota, Texas, Mississippi, Louisiana and the Navajo Nation in New Mexico. NACoal’s operating coal mining subsidiaries include Bisti Fuels Company, LLC (Bisti), Caddo Creek Resources Company, LLC (Caddo Creek), Camino Real Fuels, LLC (Camino Real), The Coteau Properties Company (Coteau), Coyote Creek Mining Company, LLC (Coyote Creek), Demery Resources Company, LLC (Demery), The Falkirk Mining Company (Falkirk), Liberty Fuels Company, LLC (Liberty), Mississippi Lignite Mining Company (MLMC) and The Sabine Mining Company (Sabine).

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