Reviewing Peabody Energy (BTU) & Westmoreland Resource Partners (WMLP)

Peabody Energy (NYSE:BTU) and Westmoreland Resource Partners (NYSE:WMLP) are both oils/energy companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, earnings, risk and dividends.

Institutional & Insider Ownership

99.2% of Peabody Energy shares are held by institutional investors. Comparatively, 0.4% of Westmoreland Resource Partners shares are held by institutional investors. 0.4% of Peabody Energy shares are held by insiders. Comparatively, 2.0% of Westmoreland Resource Partners shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Peabody Energy pays an annual dividend of $0.52 per share and has a dividend yield of 1.5%. Westmoreland Resource Partners pays an annual dividend of $0.12 per share and has a dividend yield of 5.8%.

Profitability

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

Net Margins Return on Equity Return on Assets
Peabody Energy 13.20% 19.01% 8.18%
Westmoreland Resource Partners N/A N/A N/A

Analyst Recommendations

This is a summary of current ratings and target prices for Peabody Energy and Westmoreland Resource Partners, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Peabody Energy 0 4 4 0 2.50
Westmoreland Resource Partners 0 0 0 0 N/A

Peabody Energy presently has a consensus target price of $45.00, suggesting a potential upside of 29.12%. Given Peabody Energy’s higher probable upside, equities analysts clearly believe Peabody Energy is more favorable than Westmoreland Resource Partners.

Valuation & Earnings

This table compares Peabody Energy and Westmoreland Resource Partners’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Peabody Energy $5.58 billion 0.76 $461.60 million N/A N/A
Westmoreland Resource Partners N/A N/A N/A N/A N/A

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

Summary

Peabody Energy beats Westmoreland Resource Partners on 7 of the 9 factors compared between the two stocks.

Peabody Energy Company Profile

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.

Westmoreland Resource Partners Company Profile

Westmoreland Resource Partners, LP, together with its subsidiaries, produces and markets thermal coal in the United States. The company also produces surface mined coal. It operates 1 surface mine in Wyoming; and 4 active mining complexes in Ohio comprising 13 surface mines. The company markets its coal to electric utilities with coal-fired power plants under coal sales contracts; and electric cooperatives, municipalities, and industrial customers in Wyoming, Kentucky, Michigan, Ohio, and West Virginia. Westmoreland Resources GP, LLC operates as the general partner of the company. The company was formerly known as Oxford Resource Partners, LP and changed its name to Westmoreland Resource Partners, LP in January 2015. The company was founded in 1985 and is based in Englewood, Colorado. Westmoreland Resource Partners, LP is a subsidiary of Westmoreland Coal Company.

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