Foresight Energy (NYSE: FELP) and CONSOL Coal Resources (NYSE:CCR) are both small-cap oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.
Volatility and Risk
Foresight Energy has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500. Comparatively, CONSOL Coal Resources has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500.
This table compares Foresight Energy and CONSOL Coal Resources’ net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
|CONSOL Coal Resources
Foresight Energy pays an annual dividend of $0.24 per share and has a dividend yield of 5.6%. CONSOL Coal Resources pays an annual dividend of $2.05 per share and has a dividend yield of 12.8%. Foresight Energy pays out -14.2% 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.
This is a summary of recent ratings and price targets for Foresight Energy and CONSOL Coal Resources, as reported by MarketBeat.
||Strong Buy Ratings
|CONSOL Coal Resources
Foresight Energy currently has a consensus price target of $5.25, indicating a potential upside of 21.81%. CONSOL Coal Resources has a consensus price target of $20.20, indicating a potential upside of 26.25%. Given CONSOL Coal Resources’ stronger consensus rating and higher probable upside, analysts plainly believe CONSOL Coal Resources is more favorable than Foresight Energy.
Institutional & Insider Ownership
11.7% of Foresight Energy shares are owned by institutional investors. Comparatively, 25.6% of CONSOL Coal Resources shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Foresight Energy and CONSOL Coal Resources’ gross revenue, earnings per share and valuation.
||Earnings Per Share
|CONSOL Coal Resources
CONSOL Coal Resources has lower revenue, but higher earnings than Foresight Energy. Foresight Energy 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.
CONSOL Coal Resources beats Foresight Energy on 12 of the 14 factors compared between the two stocks.
About Foresight Energy
Foresight Energy LP is engaged in the mining and marketing of coal from reserves and operations located in the Illinois Basin. As of December 31, 2016, the Company controlled 2.1 billion tons of coal in the state of Illinois. Its reserves consist principally of three contiguous blocks of uniform, thick, high heat content (high Btu) thermal coal, which are used for longwall operations. The Company operates four underground mining complexes in the Illinois Basin, including Williamson, Sugar Camp, Hillsboro and Macoupin. Its mining complexes operate in the Illinois Basin with approximately two located in Southern Illinois and over two located in Central Illinois. Williamson, Sugar Camp and Hillsboro are longwall operations, and Macoupin is a continuous miner operation. The Company markets and sells its coal to electric utility and industrial companies in the eastern half of the United States as well as internationally (primarily into Europe).
About CONSOL Coal Resources
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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