Financial Contrast: Natural Resource Partners (NRP) and Arch Coal, Inc. Class A (ARCH)
Arch Coal, Inc. Class A (NASDAQ: ARCH) and Natural Resource Partners (NYSE:NRP) are both small-cap oils/energy companies, but which is the superior business? We will compare the two companies based on the strength of their profitabiliy, valuation, institutional ownership, dividends, analyst recommendations, risk and earnings.
This is a summary of current ratings and target prices for Arch Coal, Inc. Class A and Natural Resource Partners, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Arch Coal, Inc. Class A||0||1||5||0||2.83|
|Natural Resource Partners||0||2||0||0||2.00|
Arch Coal, Inc. Class A presently has a consensus target price of $94.20, suggesting a potential upside of 47.88%. Natural Resource Partners has a consensus target price of $33.00, suggesting a potential upside of 20.00%. Given Arch Coal, Inc. Class A’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Arch Coal, Inc. Class A is more favorable than Natural Resource Partners.
Earnings & Valuation
This table compares Arch Coal, Inc. Class A and Natural Resource Partners’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Arch Coal, Inc. Class A||$2.10 billion||0.76||$281.97 million||N/A||N/A|
|Natural Resource Partners||$345.18 million||0.97||$189.12 million||$5.91||4.65|
Arch Coal, Inc. Class A has higher revenue and earnings than Natural Resource Partners.
Institutional and Insider Ownership
21.7% of Natural Resource Partners shares are owned by institutional investors. 39.0% of Natural Resource Partners shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Natural Resource Partners pays an annual dividend of $1.80 per share and has a dividend yield of 6.5%. Arch Coal, Inc. Class A does not pay a dividend. Natural Resource Partners pays out 30.5% of its earnings in the form of a dividend.
This table compares Arch Coal, Inc. Class A and Natural Resource Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Arch Coal, Inc. Class A||N/A||N/A||N/A|
|Natural Resource Partners||22.86%||62.10%||6.01%|
Natural Resource Partners beats Arch Coal, Inc. Class A on 8 of the 14 factors compared between the two stocks.
About Arch Coal, Inc. Class A
Arch Coal, Inc. is a coal producer. The Company is engaged in the production of thermal and metallurgical coal from surface and underground mines located throughout the United States, for sale to utility, industrial and steel producers both in the United States and around the world. The Company operates mining complexes in West Virginia, Kentucky, Maryland, Virginia, Illinois, Wyoming and Colorado. The Company’s segments include the Powder River Basin and Appalachia. The Powder River Basin segment includes operations in Wyoming. The Appalachia segment includes operations in West Virginia, Kentucky, Maryland and Virginia. The Company also sells coal from operations in Colorado and Illinois. Powder River Basin consists of Black Thunder and Coal Creek mines. The Company’s mines in Appalachia include Coal-Mac, Lone Mountain, Mountain Laurel, Beckley, Vindex, Sentinel and Leer. The Company operates, or contracts out the operation of approximately 10 active mines in the United States.
About Natural Resource Partners
Natural Resource Partners L.P. owns, operates, manages and leases a portfolio of mineral properties in the United States, including interests in coal, trona and soda ash, construction aggregates and other natural resources. Coal Royalty and Other segment consists primarily of coal royalty and coal related transportation and processing assets. As of December 31, 2016, Soda Ash segment included the Company’s 49% non-controlling equity interest in Ciner Wyoming, a trona ore mining operation and soda ash refinery in the Green River Basin, Wyoming. VantaCore’s operating businesses include Laurel Aggregates, located in Lake Lynn, Pennsylvania; Winn Materials/McIntosh Construction, located in Clarksville, Tennessee; Grand Rivers, located in Grand Rivers, Kentucky, and Southern Aggregates, located near Baton Rouge, Louisiana.
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