Alliance Holdings GP, L.P. (NASDAQ: AHGP) and CONSOL Energy (NYSE:CNX) are both oils/energy companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, profitabiliy, dividends, analyst recommendations, institutional ownership, earnings and risk.

Profitability

This table compares Alliance Holdings GP, L.P. and CONSOL Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Alliance Holdings GP, L.P. 10.61% 19.70% 9.31%
CONSOL Energy -36.01% -1.12% -0.49%

Volatility and Risk

Alliance Holdings GP, L.P. has a beta of 0.46, suggesting that its share price is 54% less volatile than the S&P 500. Comparatively, CONSOL Energy has a beta of 1.36, suggesting that its share price is 36% more volatile than the S&P 500.

Earnings & Valuation

This table compares Alliance Holdings GP, L.P. and CONSOL Energy’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Alliance Holdings GP, L.P. $1.98 billion 0.84 $736.37 million $3.51 7.87
CONSOL Energy $2.21 billion 1.56 $269.93 million ($3.44) -4.35

Alliance Holdings GP, L.P. has higher revenue, but lower earnings than CONSOL Energy. CONSOL Energy is trading at a lower price-to-earnings ratio than Alliance Holdings GP, L.P., indicating that it is currently the more affordable of the two stocks.

Dividends

Alliance Holdings GP, L.P. pays an annual dividend of $2.20 per share and has a dividend yield of 8.0%. CONSOL Energy does not pay a dividend. Alliance Holdings GP, L.P. pays out 62.7% of its earnings in the form of a dividend.

Insider and Institutional Ownership

24.1% of Alliance Holdings GP, L.P. shares are owned by institutional investors. 1.5% of CONSOL Energy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings for Alliance Holdings GP, L.P. and CONSOL Energy, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alliance Holdings GP, L.P. 0 0 0 0 N/A
CONSOL Energy 0 8 3 0 2.27

CONSOL Energy has a consensus price target of $22.88, indicating a potential upside of 52.81%. Given CONSOL Energy’s higher probable upside, analysts plainly believe CONSOL Energy is more favorable than Alliance Holdings GP, L.P..

About Alliance Holdings GP, L.P.

Alliance Holdings GP, L.P. (AHGP) is a limited partnership company. The Company owns directly and indirectly the members’ interest in Alliance Resource Management GP, LLC (MGP), the managing general partner of Alliance Resource Partners, L.P. (ARLP). The Company’s segments include Illinois Basin, Appalachia, and Other and Corporate. The Illinois Basin segment consists of mining complexes, including Webster County Coal’s Dotiki mining complex; Gibson County Coal’s mining complex, which includes the Gibson North mine and Gibson South mine; Warrior’s mining complex; River View’s mining complex and the Hamilton mining complex. The Appalachia segment consists of various operating segments, including the Mettiki mining complex, the Tunnel Ridge mining complex and the MC Mining mining complex. The Mettiki mining complex includes Mettiki Coal (WV)’s Mountain View mine and Mettiki Coal’s preparation plant. Other and Corporate segment includes marketing and administrative activities.

About CONSOL Energy

CONSOL Energy Inc. (CONSOL Energy) is an integrated energy company. The Company’s divisions include Exploration and Production (E&P), Pennsylvania (PA) Mining Operations and Other. The E&P division operates through four segments: Marcellus Shale, Utica Shale, Coalbed Methane (CBM) and Other Gas, which produce pipeline quality natural gas for sale primarily to gas wholesalers. Its E&P division focuses on Appalachian area natural gas and liquids activities, including production, gathering, processing and acquisition of natural gas properties in the Appalachian Basin. The Other Gas segment is primarily related to shallow oil and gas production and the Chattanooga Shale in Tennessee. The principal activities of the PA Mining Operations division are mining, preparation and marketing of thermal coal, sold primarily to power generators. The Other division includes business activities, such as coal terminal operations and water operations.

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