Contrasting Cloud Peak Energy (CLD) & Alpha Appalachia (MEE)

Cloud Peak Energy (NYSE: CLD) and Alpha Appalachia (NYSE:MEE) are both oils/energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, profitability, valuation, risk, dividends, analyst recommendations and institutional ownership.

Valuation and Earnings

This table compares Cloud Peak Energy and Alpha Appalachia’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cloud Peak Energy $800.44 million 0.41 $21.84 million $0.03 145.38
Alpha Appalachia N/A N/A N/A ($2.05) N/A

Cloud Peak Energy has higher revenue and earnings than Alpha Appalachia. Alpha Appalachia is trading at a lower price-to-earnings ratio than Cloud Peak Energy, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

79.4% of Cloud Peak Energy shares are owned by institutional investors. 2.5% of Cloud Peak Energy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Cloud Peak Energy and Alpha Appalachia’s 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%
Alpha Appalachia N/A N/A N/A

Analyst Recommendations

This is a summary of current recommendations and price targets for Cloud Peak Energy and Alpha Appalachia, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cloud Peak Energy 0 7 1 0 2.13
Alpha Appalachia 0 0 0 0 N/A

Cloud Peak Energy currently has a consensus price target of $5.00, indicating a potential upside of 14.68%.

Summary

Cloud Peak Energy beats Alpha Appalachia on 8 of the 8 factors compared between the two stocks.

Cloud Peak Energy Company Profile

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.

Alpha Appalachia Company Profile

Massey Energy Company (Massey) is a coal producer in the United States. The Company produces, processes and sells bituminous coal of various steam and metallurgical grades, primarily of a low sulfur content, through its 25 processing and shipping centers (Resource Groups), many of which receive coal from multiple mines. At January 31, 2011, the Company operated 84 mines, including 66 underground mines (one of which employs both room and pillar and longwall mining) and 18 surface mines (with 12 highwall miners in operation) in West Virginia, Kentucky and Virginia. On April 19, 2010, the Company completed the acquisition of Cumberland Resources Corporation and certain affiliated entities (Cumberland). The Cumberland operations include primarily underground coal mines in Southwestern Virginia and Eastern Kentucky. The Company owns a majority interest in Coalsolv, LLC (Coalsolv).

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