Critical Review: Puda Coal (PUDA) versus Natural Resource Partners (NRP)

Natural Resource Partners (NYSE:NRP) and Puda Coal (OTCMKTS:PUDA) are both small-cap oils/energy companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, risk and dividends.

Risk and Volatility

Natural Resource Partners has a beta of 0.22, indicating that its stock price is 78% less volatile than the S&P 500. Comparatively, Puda Coal has a beta of -25.56, indicating that its stock price is 2,656% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Natural Resource Partners and Puda Coal, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Natural Resource Partners 0 1 0 0 2.00
Puda Coal 0 0 0 0 N/A

Natural Resource Partners presently has a consensus price target of $36.00, indicating a potential upside of 7.43%. Given Natural Resource Partners’ higher probable upside, equities analysts clearly believe Natural Resource Partners is more favorable than Puda Coal.

Dividends

Natural Resource Partners pays an annual dividend of $1.80 per share and has a dividend yield of 5.4%. Puda Coal does not pay a dividend. Natural Resource Partners pays out 38.2% of its earnings in the form of a dividend. Natural Resource Partners has raised its dividend for 2 consecutive years.

Insider and Institutional Ownership

29.5% of Natural Resource Partners shares are held by institutional investors. 35.3% of Natural Resource Partners shares are held by insiders. Comparatively, 48.3% of Puda Coal shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Natural Resource Partners and Puda Coal’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Natural Resource Partners $378.02 million 1.09 $88.66 million $4.71 7.11
Puda Coal N/A N/A N/A N/A N/A

Natural Resource Partners has higher revenue and earnings than Puda Coal.

Profitability

This table compares Natural Resource Partners and Puda Coal’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Natural Resource Partners 30.69% 32.05% 7.12%
Puda Coal N/A N/A N/A

Summary

Natural Resource Partners beats Puda Coal on 9 of the 11 factors compared between the two stocks.

Natural Resource Partners Company Profile

Natural Resource Partners L.P., through its subsidiaries, owns, operates, manages, and leases mineral properties in the United States. The company operates through three segments: Coal Royalty and Other; Soda Ash; and Construction Aggregates. It owns interests in coal, trona and soda ash, construction aggregates, and other natural resources. The company's coal reserves are primarily located in Appalachia, the Illinois Basin, and the Western United States; aggregates and industrial minerals are located in Pennsylvania, West Virginia, Tennessee, Kentucky, and Louisiana; oil and gas royalty assets located in Louisiana; and trona ore mining operation and soda ash refinery located in the Green River Basin, Wyoming. It also operates four limestone quarries, one underground limestone mine, five sand and gravel plants, two asphalt plants, and two marine terminals. The company leases coal reserves, and aggregates and industrial minerals reserves in exchange for royalty payments; and owns transportation and processing infrastructure related to coal properties. NRP (GP) LP serves as the general partner of the company. Natural Resource Partners L.P. was founded in 2002 and is headquartered in Houston, Texas.

Puda Coal Company Profile

Puda Coal, Inc., through its indirect equity ownership in Shanxi Puda Coal Group Co., Ltd., supplies metallurgical coking coal in the People's Republic of China. Its processed coking coal is used by coke and steel producers for the purpose of making the coke required for the steel manufacturing process. The company primarily markets its products in the Shanxi Province, Inner Mongolia Autonomous Region, Hebei Province, Beijing, and Tianjin. It also operates as an acquirer and consolidator of two coal mine consolidation projects, including the Pinglu project in Pinglu County; and the Jianhe project in Huozhou County, Shanxi Province. The company was founded in 2004 and is headquartered in Taiyuan, the People's Republic of China.

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