NACCO Industries (NC) and Westmoreland Coal (WLB) Critical Comparison
NACCO Industries (NYSE: NC) and Westmoreland Coal (NASDAQ:WLB) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, earnings, dividends and risk.
NACCO Industries pays an annual dividend of $2.08 per share and has a dividend yield of 5.0%. Westmoreland Coal does not pay a dividend. NACCO Industries pays out 40.2% of its earnings in the form of a dividend. Westmoreland Coal has increased its dividend for 3 consecutive years.
This is a summary of current ratings and price targets for NACCO Industries and Westmoreland Coal, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Westmoreland Coal has a consensus price target of $10.67, indicating a potential upside of 514.79%. Given Westmoreland Coal’s higher probable upside, analysts plainly believe Westmoreland Coal is more favorable than NACCO Industries.
Risk & Volatility
NACCO Industries has a beta of 0.33, meaning that its share price is 67% less volatile than the S&P 500. Comparatively, Westmoreland Coal has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500.
Valuation and Earnings
This table compares NACCO Industries and Westmoreland Coal’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|NACCO Industries||$854.67 million||0.33||$27.70 million||$5.18||8.03|
|Westmoreland Coal||$1.43 billion||0.02||$231.38 million||($6.11)||-0.28|
Westmoreland Coal has higher revenue and earnings than NACCO Industries. Westmoreland Coal is trading at a lower price-to-earnings ratio than NACCO Industries, indicating that it is currently the more affordable of the two stocks.
This table compares NACCO Industries and Westmoreland Coal’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
49.3% of NACCO Industries shares are held by institutional investors. Comparatively, 78.0% of Westmoreland Coal shares are held by institutional investors. 30.6% of NACCO Industries shares are held by company insiders. Comparatively, 1.4% of Westmoreland Coal shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Westmoreland Coal beats NACCO Industries on 8 of the 15 factors compared between the two stocks.
NACCO Industries Company Profile
NACCO Industries, Inc. is a holding company. The Company’s principal business includes mining. The Company operates through the NACoal segment. The Company’s subsidiary includes The North American Coal Corporation (NACoal). The Company’s NACoal segment mines coal for use in power generation and provides mining services for other natural resources companies. Coal is surface mined from NACoal’s mines in North Dakota, Texas, Mississippi, Louisiana and the Navajo Nation in New Mexico. NACoal’s operating coal mining subsidiaries include Bisti Fuels Company, LLC (Bisti), Caddo Creek Resources Company, LLC (Caddo Creek), Camino Real Fuels, LLC (Camino Real), The Coteau Properties Company (Coteau), Coyote Creek Mining Company, LLC (Coyote Creek), Demery Resources Company, LLC (Demery), The Falkirk Mining Company (Falkirk), Liberty Fuels Company, LLC (Liberty), Mississippi Lignite Mining Company (MLMC) and The Sabine Mining Company (Sabine).
Westmoreland Coal Company Profile
Westmoreland Coal Company is an energy company. The Company operates through six segments: Coal-U.S., Coal-Canada, Coal-(WMLP), Power, Heritage and Corporate. The Coal-U.S. segment includes the operations of coal mines located in Montana, North Dakota, Ohio, Texas and New Mexico. The Coal-Canada segment includes the operations of coal mines located in Alberta and Saskatchewan. The Coal-WMLP segment includes the operations of Westmoreland Resource Partners, LP, a coal master limited partnership. The Power segment includes its Roanoke Valley Power Facility (ROVA) operations located in North Carolina. The Heritage segment includes the benefits it provides to former mining operation employees, as well as other administrative costs associated with providing those benefits and cost containment efforts. It produces and sells thermal coal primarily to investment grade utility customers under cost-protected contracts, as well as to industrial customers and barbeque briquettes manufacturers.
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