Natural Resource Partners (NYSE: NRP) and Foresight Energy (NYSE:FELP) are both small-cap oils/energy companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, analyst recommendations, valuation, profitability, earnings and dividends.

Earnings and Valuation

This table compares Natural Resource Partners and Foresight Energy’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Natural Resource Partners $345.18 million 0.92 $189.12 million $3.32 7.80
Foresight Energy $940.14 million 0.67 $180.74 million ($1.81) -2.48

Natural Resource Partners has higher revenue, but lower earnings than Foresight Energy. Foresight Energy is trading at a lower price-to-earnings ratio than Natural Resource Partners, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Natural Resource Partners has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500. Comparatively, Foresight Energy has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500.

Profitability

This table compares Natural Resource Partners and Foresight Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Natural Resource Partners 25.25% 56.92% 6.32%
Foresight Energy -21.13% -24.49% -3.02%

Analyst Ratings

This is a breakdown of current ratings for Natural Resource Partners and Foresight Energy, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Natural Resource Partners 0 2 0 0 2.00
Foresight Energy 0 2 0 0 2.00

Natural Resource Partners currently has a consensus price target of $30.50, indicating a potential upside of 17.76%. Foresight Energy has a consensus price target of $5.75, indicating a potential upside of 28.35%. Given Foresight Energy’s higher probable upside, analysts clearly believe Foresight Energy is more favorable than Natural Resource Partners.

Dividends

Natural Resource Partners pays an annual dividend of $1.80 per share and has a dividend yield of 6.9%. Foresight Energy does not pay a dividend. Natural Resource Partners pays out 54.2% of its earnings in the form of a dividend.

Institutional and Insider Ownership

21.6% of Natural Resource Partners shares are owned by institutional investors. Comparatively, 11.5% of Foresight Energy 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, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Natural Resource Partners beats Foresight Energy on 9 of the 13 factors compared between the two stocks.

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.

About Foresight Energy

Foresight Energy LP is engaged in the mining and marketing of coal from reserves and operations located in the Illinois Basin. As of December 31, 2016, the Company controlled 2.1 billion tons of coal in the state of Illinois. Its reserves consist principally of three contiguous blocks of uniform, thick, high heat content (high Btu) thermal coal, which are used for longwall operations. The Company operates four underground mining complexes in the Illinois Basin, including Williamson, Sugar Camp, Hillsboro and Macoupin. Its mining complexes operate in the Illinois Basin with approximately two located in Southern Illinois and over two located in Central Illinois. Williamson, Sugar Camp and Hillsboro are longwall operations, and Macoupin is a continuous miner operation. The Company markets and sells its coal to electric utility and industrial companies in the eastern half of the United States as well as internationally (primarily into Europe).

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