SunCoke Energy (NYSE: SXC) and Mechel PAO (NYSE:MTL) are both small-cap oils/energy companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitabiliy, risk, dividends and earnings.

Earnings and Valuation

This table compares SunCoke Energy and Mechel PAO’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
SunCoke Energy $1.22 billion 0.58 $227.30 million $0.31 35.35
Mechel PAO $9.39 billion 0.11 $2.43 billion N/A N/A

Mechel PAO has higher revenue and earnings than SunCoke Energy.

Profitability

This table compares SunCoke Energy and Mechel PAO’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SunCoke Energy 1.60% 3.29% 0.94%
Mechel PAO N/A N/A N/A

Volatility & Risk

SunCoke Energy has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500. Comparatively, Mechel PAO has a beta of -1.08, indicating that its share price is 208% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for SunCoke Energy and Mechel PAO, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SunCoke Energy 0 0 1 0 3.00
Mechel PAO 1 0 0 0 1.00

SunCoke Energy currently has a consensus target price of $11.00, suggesting a potential upside of 0.36%. Given SunCoke Energy’s stronger consensus rating and higher probable upside, research analysts plainly believe SunCoke Energy is more favorable than Mechel PAO.

Insider and Institutional Ownership

97.4% of SunCoke Energy shares are owned by institutional investors. Comparatively, 8.3% of Mechel PAO shares are owned by institutional investors. 3.9% of SunCoke Energy shares are owned 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.

Summary

SunCoke Energy beats Mechel PAO on 10 of the 12 factors compared between the two stocks.

About SunCoke Energy

SunCoke Energy, Inc. is a producer of coke in the Americas. The Company’s segments include Domestic Coke, Brazil Coke, Coal Logistics, and Corporate and Other. The Domestic Coke segment consists of its Jewell Coke Company, L.P. (Jewell), Indiana Harbor Coke Company (Indiana Harbor), Haverhill Coke Company LLC (Haverhill), Gateway Energy and Coke Company, LLC (Granite City) and Middletown Coke Company, LLC (Middletown) cokemaking and heat recovery operations. The Brazil Coke segment consists of its operations in Vitoria, Brazil, where the Company operate a cokemaking facility, ArcelorMittal Brasil S.A. The Coal Logistics segment consists of its Convent Marine Terminal (CMT), Kanawha River Terminals, LLC (KRT), SunCoke Lake Terminal, LLC (Lake Terminal) and Dismal River Terminal, LLC (DRT) coal handling and/or mixing service operations. It designs, develops, builds, owns and operates five cokemaking facilities in the United States, as of December 31, 2016.

About Mechel PAO

Mechel PAO, formerly Mechel OAO, is a holding company. The Company operates in the mining, steel and power industry segments. Its segments include Steel segment, comprising production and sales of semi-finished steel products, carbon and specialty long products, carbon and stainless flat products, and value-added downstream metal products, including forgings, stampings, and hardware, and ferrosilicon; Mining segment, comprising production and sales of coal (coking and steam), and middlings, coke and chemical products, and iron ore, which supplies raw materials to the Steel and Power segments, and also sells raw materials to third parties, and Power segment, comprising generation and sales of electricity and heat power, which supplies electricity and heat power to the Steel and Mining segments, and also sells a portion of electricity and heat power to third parties. It has freight seaports in Russia on the Sea of Japan and on the Sea of Azov, and a freight river port on the Kama River.

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