Mechel PAO (NYSE: MTL) and SunCoke Energy Partners, L.P. (NYSE:SXCP) are both small-cap basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, valuation, analyst recommendations, risk, institutional ownership and dividends.

Analyst Ratings

This is a breakdown of recent ratings for Mechel PAO and SunCoke Energy Partners, L.P., as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mechel PAO 1 0 0 0 1.00
SunCoke Energy Partners, L.P. 0 0 1 0 3.00

SunCoke Energy Partners, L.P. has a consensus price target of $19.00, suggesting a potential upside of 8.26%. Given SunCoke Energy Partners, L.P.’s stronger consensus rating and higher possible upside, analysts plainly believe SunCoke Energy Partners, L.P. is more favorable than Mechel PAO.

Institutional and Insider Ownership

8.3% of Mechel PAO shares are held by institutional investors. Comparatively, 15.7% of SunCoke Energy Partners, L.P. shares are held by institutional investors. 36.3% of Mechel PAO shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

SunCoke Energy Partners, L.P. pays an annual dividend of $2.38 per share and has a dividend yield of 13.6%. Mechel PAO does not pay a dividend. SunCoke Energy Partners, L.P. pays out -127.3% of its earnings in the form of a dividend.

Risk and Volatility

Mechel PAO has a beta of -1.18, meaning that its share price is 218% less volatile than the S&P 500. Comparatively, SunCoke Energy Partners, L.P. has a beta of 1.31, meaning that its share price is 31% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Mechel PAO N/A N/A N/A
SunCoke Energy Partners, L.P. -9.52% 14.02% 5.44%

Valuation and Earnings

This table compares Mechel PAO and SunCoke Energy Partners, L.P.’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Mechel PAO $9.52 billion 0.11 $2.49 billion N/A N/A
SunCoke Energy Partners, L.P. $800.00 million 1.01 $218.50 million ($1.87) -9.38

Mechel PAO has higher revenue and earnings than SunCoke Energy Partners, L.P..

Summary

SunCoke Energy Partners, L.P. beats Mechel PAO on 10 of the 14 factors compared between the two stocks.

Mechel PAO Company Profile

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.

SunCoke Energy Partners, L.P. Company Profile

SunCoke Energy Partners, L.P. is engaged in the production of coke used in the blast furnace production of steel. As of December 31, 2016, the Company owned a 98% interest in Haverhill Coke Company LLC (Haverhill), Middletown Coke Company, LLC (Middletown), and Gateway Energy and Coke Company, LLC (Granite City). The Company’s segments include Domestic Coke, which consists of the Haverhill, Middletown and Granite City cokemaking and heat recovery operations located in Franklin Furnace, Ohio; Middletown, Ohio, and Granite City, Illinois, respectively, and Coal Logistics, which consists of the Company’s Convent Marine Terminal, Kanawha River Terminals, LLC and SunCoke Lake Terminal, LLC (Lake Terminal) coal handling and/or mixing service operations in Convent, Louisiana; Ceredo and Belle, West Virginia, and East Chicago, Indiana, respectively. It also provides coal handling and/or mixing services at its Coal Logistics terminals to steel, coke, electric utility and coal mining customers.

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