Critical Contrast: Alliance Resource Partners (ARLP) vs. PVR Partners (PVR)

Alliance Resource Partners (NASDAQ: ARLP) and PVR Partners (NYSE:PVR) are both energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.

Earnings and Valuation

This table compares Alliance Resource Partners and PVR Partners’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Alliance Resource Partners $1.93 billion 1.42 $339.39 million $3.84 5.46
PVR Partners N/A N/A N/A ($0.81) N/A

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

Insider and Institutional Ownership

14.4% of Alliance Resource Partners shares are held by institutional investors. 44.0% of Alliance Resource Partners shares are held by company 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.

Dividends

Alliance Resource Partners pays an annual dividend of $2.02 per share and has a dividend yield of 9.6%. PVR Partners does not pay a dividend. Alliance Resource Partners pays out 52.6% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Alliance Resource Partners and PVR Partners, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alliance Resource Partners 0 1 3 0 2.75
PVR Partners 0 0 0 0 N/A

Alliance Resource Partners currently has a consensus target price of $26.33, suggesting a potential upside of 25.55%.

Profitability

This table compares Alliance Resource Partners and PVR Partners’ 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%
PVR Partners N/A N/A N/A

Summary

Alliance Resource Partners beats PVR Partners on 9 of the 10 factors compared between the two stocks.

About Alliance Resource Partners

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.

About PVR Partners

PVR Partners, L.P. (PVR) is engaged in the gathering and processing of natural gas and the management of coal and natural resource properties in the United States. The Company operates in three business segments: Eastern Midstream, Midcontinent Midstream and Coal and Natural Resource Management. In March 2014, Regency Energy Partners LP announced that it has acquired acquires all of PVR Partners, L.P’s outstanding units.

Receive News & Ratings for Alliance Resource Partners Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Alliance Resource Partners and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply