Analyzing Cloud Peak Energy (NYSE:CLD) and The Competition

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

Valuation and Earnings

This table compares Cloud Peak Energy and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Cloud Peak Energy $800.44 million $21.84 million 141.05
Cloud Peak Energy Competitors $934.53 million -$31.41 million 139.98

Cloud Peak Energy’s peers have higher revenue, but lower earnings than Cloud Peak Energy. Cloud Peak Energy 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.

Profitability

This table compares Cloud Peak Energy and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cloud Peak Energy N/A 0.39% 0.23%
Cloud Peak Energy Competitors -228.19% 7.48% 2.60%

Institutional & Insider Ownership

79.5% of Cloud Peak Energy shares are owned by institutional investors. Comparatively, 42.8% of shares of all “Coal” companies are owned by institutional investors. 2.5% of Cloud Peak Energy shares are owned by insiders. Comparatively, 22.2% of shares of all “Coal” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Cloud Peak Energy has a beta of 1.61, meaning that its share price is 61% more volatile than the S&P 500. Comparatively, Cloud Peak Energy’s peers have a beta of 0.85, meaning that their average share price is 15% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Cloud Peak Energy and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cloud Peak Energy 0 7 1 0 2.13
Cloud Peak Energy Competitors 190 644 1026 20 2.47

Cloud Peak Energy presently has a consensus target price of $5.17, suggesting a potential upside of 22.14%. As a group, “Coal” companies have a potential upside of 37.38%. Given Cloud Peak Energy’s peers stronger consensus rating and higher possible upside, analysts clearly believe Cloud Peak Energy has less favorable growth aspects than its peers.

Summary

Cloud Peak Energy peers beat Cloud Peak Energy on 9 of the 13 factors compared.

About Cloud Peak Energy

Cloud Peak Energy Inc. is a producer of coal in the United States of America and the Powder River Basin (PRB). In the PRB, the Company owns and operates three surface coal mines: the Antelope Mine, the Cordero Rojo Mine and the Spring Creek Mine. Its segments include Owned and Operated Mines, and Logistics and Related Activities. Its Owned and Operated Mines segment includes its Antelope Mine, Cordero Rojo Mine, and Spring Creek Mine. The Logistics and Related Activities segment includes the services it provides to its international and certain of its domestic customers where it delivers coal to the customer at a terminal or the customer’s plant or other delivery point, remote from its mine site. As of December 31, 2016, the Company also operated two development projects, both located in the Northern PRB: Youngs Creek Project and Big Metal Project. The Company’s Antelope Mine and Cordero Rojo Mine are located in Wyoming and its Spring Creek Mine is located in Montana.

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