Contura Energy (CNTE) and Alliance Resource Partners (ARLP) Head-To-Head Analysis

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

Analyst Ratings

This is a summary of current ratings for Contura Energy and Alliance Resource Partners, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Contura Energy 0 0 3 0 3.00
Alliance Resource Partners 0 1 4 0 2.80

Contura Energy currently has a consensus price target of $86.00, indicating a potential upside of 18.78%. Alliance Resource Partners has a consensus price target of $24.80, indicating a potential upside of 24.62%. Given Alliance Resource Partners’ higher possible upside, analysts plainly believe Alliance Resource Partners is more favorable than Contura Energy.

Earnings and Valuation

This table compares Contura Energy and Alliance Resource Partners’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Contura Energy $1.65 billion 0.47 $154.52 million $9.58 7.56
Alliance Resource Partners $1.80 billion 1.45 $303.63 million $2.87 6.93

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

Dividends

Alliance Resource Partners pays an annual dividend of $2.06 per share and has a dividend yield of 10.4%. Contura Energy does not pay a dividend. Alliance Resource Partners pays out 71.8% of its earnings in the form of a dividend.

Volatility and Risk

Contura Energy has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500. Comparatively, Alliance Resource Partners has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500.

Profitability

This table compares Contura Energy and Alliance Resource Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Contura Energy 9.63% 324.63% 10.30%
Alliance Resource Partners 19.79% 23.79% 12.66%

Institutional & Insider Ownership

0.9% of Contura Energy shares are held by institutional investors. Comparatively, 15.3% of Alliance Resource Partners shares are held by institutional investors. 44.0% of Alliance Resource Partners shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Alliance Resource Partners beats Contura Energy on 10 of the 16 factors compared between the two stocks.

About Contura Energy

Contura Energy, Inc. extracts, processes, and markets steam and metallurgical coal to electric utilities, steel and coke producers, and industrial customers the United States. The company operates in four segments: Central Appalachia Operations, Northern Appalachia Operations, Powder River Basin Operations, and Trading and Logistics. It operates ground and surface coal mining complexes in Pennsylvania, Virginia, West Virginia, and Wyoming. The company provides coal trading and terminal services. Contura Energy, Inc. was founded in 2016 and is headquartered in Bristol, Tennessee.

About Alliance Resource Partners

Alliance Resource Partners, L.P. produces and markets coal primarily to utilities and industrial users in the United States. The company operates through two segments, Illinois Basin and Appalachia. It produces a range of steam and metallurgical coal with sulfur and heat contents. The company operates eight underground mining complexes in Illinois, Indiana, Kentucky, Maryland, and West Virginia. It also leases land and operates a coal loading terminal on the Ohio River at Mt. Vernon, Indiana; and buys and resells coal, as well as owns equity interests in various oil and gas mineral interests and gas compression services located within producing basins in the continental United States. In addition, the company offers various industrial and mining technology products and services, such as miner and equipment tracking systems, and proximity detection systems. As of December 31, 2017, it had approximately 1.67 billion tons of proven and probable coal reserves in Illinois, Indiana, Kentucky, Maryland, Pennsylvania, and West Virginia. Alliance Resource Management GP, LLC serves as the general partner of the company. The company was founded in 1971 and is headquartered in Tulsa, Oklahoma. Alliance Resource Partners, L.P. is a subsidiary of Alliance Holdings GP, L.P.

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