CONSOL Energy (NYSE: CNX) and Cloud Peak Energy (NYSE:CLD) are both oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitabiliy, risk, dividends, valuation, analyst recommendations, earnings and institutional ownership.

Insider and Institutional Ownership

80.9% of Cloud Peak Energy shares are owned by institutional investors. 1.5% of CONSOL Energy shares are owned by insiders. Comparatively, 2.5% of Cloud Peak Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares CONSOL Energy and Cloud Peak Energy’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
CONSOL Energy $2.21 billion 1.63 $269.93 million ($3.44) -4.55
Cloud Peak Energy $786.32 million 0.34 $123.77 million $0.63 5.87

CONSOL Energy has higher revenue and earnings than Cloud Peak Energy. CONSOL Energy is trading at a lower price-to-earnings ratio than Cloud Peak Energy, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and price targets for CONSOL Energy and Cloud Peak Energy, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CONSOL Energy 0 7 4 0 2.36
Cloud Peak Energy 0 7 2 0 2.22

CONSOL Energy currently has a consensus target price of $22.89, indicating a potential upside of 46.25%. Cloud Peak Energy has a consensus target price of $5.43, indicating a potential upside of 46.72%. Given Cloud Peak Energy’s higher probable upside, analysts plainly believe Cloud Peak Energy is more favorable than CONSOL Energy.

Risk & Volatility

CONSOL Energy has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500. Comparatively, Cloud Peak Energy has a beta of 1.42, indicating that its share price is 42% more volatile than the S&P 500.

Profitability

This table compares CONSOL Energy and Cloud Peak Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CONSOL Energy -36.01% -1.12% -0.49%
Cloud Peak Energy 4.68% 4.00% 2.22%

Summary

Cloud Peak Energy beats CONSOL Energy on 8 of the 13 factors compared between the two stocks.

CONSOL Energy Company Profile

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.

Cloud Peak Energy Company Profile

Cloud Peak Energy Inc. is a producer of coal in the United States of America and the Powder River Basin (PRB). In the PRB, the Company owns and operates three surface coal mines: the Antelope Mine, the Cordero Rojo Mine and the Spring Creek Mine. Its segments include Owned and Operated Mines, and Logistics and Related Activities. Its Owned and Operated Mines segment includes its Antelope Mine, Cordero Rojo Mine, and Spring Creek Mine. The Logistics and Related Activities segment includes the services it provides to its international and certain of its domestic customers where it delivers coal to the customer at a terminal or the customer’s plant or other delivery point, remote from its mine site. As of December 31, 2016, the Company also operated two development projects, both located in the Northern PRB: Youngs Creek Project and Big Metal Project. The Company’s Antelope Mine and Cordero Rojo Mine are located in Wyoming and its Spring Creek Mine is located in Montana.

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