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

Institutional & Insider Ownership

81.5% of Cloud Peak Energy shares are held by institutional investors. Comparatively, 60.8% of CNX Coal Resources shares are held by institutional investors. 2.5% of Cloud Peak Energy shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Cloud Peak Energy and CNX Coal Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cloud Peak Energy 4.68% 4.00% 2.22%
CNX Coal Resources 10.02% 18.32% 6.07%

Risk and Volatility

Cloud Peak Energy has a beta of 1.42, indicating that its share price is 42% more volatile than the S&P 500. Comparatively, CNX Coal Resources has a beta of 1.48, indicating that its share price is 48% more volatile than the S&P 500.

Earnings & Valuation

This table compares Cloud Peak Energy and CNX Coal Resources’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Cloud Peak Energy $786.32 million 0.32 $123.77 million $0.63 5.49
CNX Coal Resources $301.84 million 1.26 $87.51 million $1.23 13.29

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

Dividends

CNX Coal Resources pays an annual dividend of $2.05 per share and has a dividend yield of 12.5%. Cloud Peak Energy does not pay a dividend. CNX Coal Resources pays out 166.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a breakdown of recent recommendations for Cloud Peak Energy and CNX Coal Resources, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cloud Peak Energy 0 7 2 0 2.22
CNX Coal Resources 0 2 5 0 2.71

Cloud Peak Energy presently has a consensus price target of $5.29, suggesting a potential upside of 52.77%. CNX Coal Resources has a consensus price target of $20.00, suggesting a potential upside of 22.32%. Given Cloud Peak Energy’s higher possible upside, equities analysts clearly believe Cloud Peak Energy is more favorable than CNX Coal Resources.

Summary

CNX Coal Resources beats Cloud Peak Energy on 10 of the 16 factors compared between the two stocks.

About Cloud Peak Energy

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.

About CNX Coal Resources

CNX Coal Resources LP is a producer of high-British thermal units (Btu) thermal coal in the Northern Appalachian Basin and the eastern United States. It is engaged in the management and development of coal operations of CONSOL Energy Inc. (CONSOL Energy) in Pennsylvania. It holds interest in, and operational control over, CONSOL Energy’s Pennsylvania Mining Complex, which consists of three underground mines and related infrastructure that produce high-Btu bituminous thermal coal that is sold primarily to electric utilities in the eastern United States. The Pennsylvania Mining Complex includes the Bailey Mine, the Enlow Fork Mine and the Harvey Mine. It mines its reserves from the Pittsburgh Number eight Coal Seam, which is a contiguous formation of uniform, Btu thermal coal. Its Bailey Mine is located in Enon, Pennsylvania. Its Enlow Fork Mine is located directly north of the Bailey Mine. Its Harvey Mine is located directly east of the Bailey and Enlow Fork Mines.

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