Reviewing Rhino Resource Partners (RHNO) and Peabody Energy (NYSE:BTU)

Rhino Resource Partners (OTCMKTS: RHNO) and Peabody Energy (NYSE:BTU) are both oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations for Rhino Resource Partners and Peabody Energy, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rhino Resource Partners 0 0 0 0 N/A
Peabody Energy 0 2 7 0 2.78

Peabody Energy has a consensus target price of $42.00, indicating a potential upside of 17.09%. Given Peabody Energy’s higher possible upside, analysts plainly believe Peabody Energy is more favorable than Rhino Resource Partners.

Profitability

This table compares Rhino Resource Partners and Peabody Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rhino Resource Partners -8.38% -13.80% -7.46%
Peabody Energy 14.41% 32.83% 7.50%

Insider and Institutional Ownership

79.3% of Peabody Energy shares are held by institutional investors. 1.3% of Peabody Energy shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Rhino Resource Partners and Peabody Energy’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rhino Resource Partners $218.69 million 0.11 -$18.78 million N/A N/A
Peabody Energy $5.58 billion 0.83 $461.60 million N/A N/A

Peabody Energy has higher revenue and earnings than Rhino Resource Partners.

Dividends

Peabody Energy pays an annual dividend of $0.46 per share and has a dividend yield of 1.3%. Rhino Resource Partners does not pay a dividend.

Summary

Peabody Energy beats Rhino Resource Partners on 11 of the 11 factors compared between the two stocks.

About Rhino Resource Partners

Rhino Resource Partners LP, together with its subsidiaries, produces, processes, and sells various grades of steam and metallurgical coal from surface and underground mines in the United States. It operates mines in Kentucky, Ohio, West Virginia, and Utah. The company markets its steam coal primarily to electric utility companies as fuel for their steam powered generators; and metallurgical coal primarily to steel and coke producers. It also manages and leases coal properties; mines and sells limestone from reserves located at Sands Hill mining complex to construction companies and road builders. As of December 31, 2016, the company controlled an estimated 256.9 million tons of proven and probable coal reserves consisting of an estimated 203.5 million tons of steam coal and an estimated 53.4 million tons of metallurgical coal; and 196.5 million tons of non-reserve coal deposits. Rhino GP LLC operates as a general partner of the company. The company was founded in 2003 and is based in Lexington, Kentucky.

About Peabody Energy

Peabody Energy Corporation engages in coal mining business. The company operates through six segments: Powder River Basin Mining, Midwestern U.S. Mining, Western U.S. Mining, Australian Metallurgical Mining, Australian Thermal Mining, and Trading and Brokerage. It is involved in mining, preparation, and sale of thermal coal primarily to electric utilities; and metallurgical coal that include hard coking coal, semi-hard coking coal, semi-soft coking coal, and low-volatile pulverized coal injection for industrial customers. The company supplies coal primarily to electricity generators, industrial facilities, and steel manufacturers. It owns interests in 23 coal mining operations located in the United States and Australia. The company also engages in direct and brokered trading of coal and freight-related contracts, as well as provides transportation-related services, which involves financial derivative contracts and physical contracts. As of December 31, 2017, it had 5.2 billion tons of proven and probable coal reserves and approximately 600,000 acres of surface property through ownership and lease agreements. Peabody Energy Corporation was founded in 1883 and is headquartered in St. Louis, Missouri. On April 13, 2016, Peabody Energy Corporation and its subsidiaries filed a voluntary petition for reorganization under Chapter 11 in the United States Bankruptcy Court for the Eastern District of Missouri.

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