Reviewing Consol Energy (CEIX) and BHP Billiton (BBL)

Consol Energy (NYSE: CEIX) and BHP Billiton (NYSE:BBL) are both oils/energy companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.

Analyst Ratings

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This is a summary of current ratings and target prices for Consol Energy and BHP Billiton, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Consol Energy 0 0 3 0 3.00
BHP Billiton 0 4 0 0 2.00

Consol Energy presently has a consensus price target of $36.00, indicating a potential upside of 22.66%. BHP Billiton has a consensus price target of $40.00, indicating a potential upside of 2.46%. Given Consol Energy’s stronger consensus rating and higher probable upside, research analysts clearly believe Consol Energy is more favorable than BHP Billiton.

Profitability

This table compares Consol Energy and BHP Billiton’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Consol Energy N/A N/A N/A
BHP Billiton N/A N/A N/A

Institutional and Insider Ownership

94.6% of Consol Energy shares are owned by institutional investors. Comparatively, 4.1% of BHP Billiton shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Consol Energy and BHP Billiton’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Consol Energy $1.41 billion 0.58 $67.62 million $4.50 6.52
BHP Billiton $38.29 billion 1.08 $5.89 billion $2.53 15.43

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

Dividends

BHP Billiton pays an annual dividend of $1.96 per share and has a dividend yield of 5.0%. Consol Energy does not pay a dividend. BHP Billiton pays out 77.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Consol Energy beats BHP Billiton on 6 of the 10 factors compared between the two stocks.

About Consol Energy

CONSOL Energy Inc., formerly CONSOL Mining Corporation, is engaged in the natural gas exploration and production business. The Company is a producer and exporter of high-Btu bituminous thermal and crossover metallurgical coal. It holds interest in the Pennsylvania Mining Complex (PMC) and related coal assets, terminal operations at the Port of Baltimore. The Company also holds interest in the undeveloped coal reserves located in the Northern Appalachian, Central Appalachian and Illinois basins. The Pennsylvania Mining complex, located in Greene and Washington counties. PMC includes Bailey Mine, Enlow Fork Mine, Harvey Mine, Centralized Coal Processing facility and Train Loadout facility.

About BHP Billiton

BHP Billiton Plc, together with its subsidiaries, discovers, acquires, develops, and markets natural resources worldwide. It operates through four segments: Petroleum, Copper, Iron Ore, and Coal. The company explores for copper, silver, lead, zinc, molybdenum, uranium, gold, and iron ores, as well as metallurgical coal, thermal energy coal, and oil and gas properties. It also engages in the mining, smelting, and refining of nickel; the provision of freight, finance, and administrative services, as well as trading, marketing, and support services; and potash development activities. The company was formerly known as Billiton Plc. The company was incorporated in 1996 and is based in London, the United Kingdom. BHP Billiton Plc is a subsidiary of BHP Billiton Group.

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