CONSOL Energy (NYSE: CNX) and Alliance Resource Partners, L.P. (NASDAQ:ARLP) are both oils/energy companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, risk, dividends, valuation and profitabiliy.

Volatility and Risk

CONSOL Energy has a beta of 1.33, indicating that its stock price is 33% more volatile than the S&P 500. Comparatively, Alliance Resource Partners, L.P. has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500.

Dividends

Alliance Resource Partners, L.P. pays an annual dividend of $1.75 per share and has a dividend yield of 8.7%. CONSOL Energy does not pay a dividend. Alliance Resource Partners, L.P. pays out 42.2% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent ratings and target prices for CONSOL Energy and Alliance Resource Partners, L.P., as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CONSOL Energy 0 7 4 0 2.36
Alliance Resource Partners, L.P. 0 1 3 0 2.75

CONSOL Energy presently has a consensus price target of $22.89, indicating a potential upside of 41.12%. Alliance Resource Partners, L.P. has a consensus price target of $27.75, indicating a potential upside of 38.06%. Given CONSOL Energy’s higher probable upside, analysts clearly believe CONSOL Energy is more favorable than Alliance Resource Partners, L.P..

Valuation & Earnings

This table compares CONSOL Energy and Alliance Resource Partners, L.P.’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
CONSOL Energy $2.21 billion 1.69 $269.93 million ($3.44) -4.72
Alliance Resource Partners, L.P. N/A N/A N/A $4.15 4.84

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

Profitability

This table compares CONSOL Energy and Alliance Resource Partners, L.P.’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%
Alliance Resource Partners, L.P. 20.05% 37.37% 17.63%

Institutional and Insider Ownership

25.9% of Alliance Resource Partners, L.P. shares are held by institutional investors. 1.5% of CONSOL Energy shares are held by company insiders. Comparatively, 44.0% of Alliance Resource Partners, L.P. shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Alliance Resource Partners, L.P. 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.

Alliance Resource Partners, L.P. Company Profile

Alliance Resource Partners, L.P. is a producer and marketer of coal primarily to the United States utilities and industrial users. The Company operates through segments, including Illinois Basin, Appalachia, and Other and Corporate. The Illinois Basin segment consists of various operating segments, including Webster County Coal, LLC’s Dotiki mining complex, Gibson County Coal, LLC’s mining complex, which includes the Gibson North mine and Gibson South mine, Hopkins County Coal, LLC’s mining complex, which includes the Elk Creek mine, the Pleasant View surface mineable reserves and the Fies property, White County Coal, LLC’s, Pattiki mining complex, Warrior Coal, LLC’s mining complex, Sebree Mining, LLC’s mining complex, which includes the Onton mine and River View Coal, LLC mining complex. The Appalachia segment consists of multiple operating segments, including the Mettiki mining complex, the Tunnel Ridge mining complex and the MC Mining mining complex.

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