Analyzing Alpha Appalachia (MEE) and Its Competitors

Alpha Appalachia (NYSE: MEE) is one of 33 publicly-traded companies in the “Coal” industry, but how does it compare to its competitors? We will compare Alpha Appalachia to similar companies based on the strength of its analyst recommendations, valuation, profitability, earnings, institutional ownership, risk and dividends.

Insider & Institutional Ownership

42.8% of shares of all “Coal” companies are held by institutional investors. 22.2% of shares of all “Coal” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Alpha Appalachia and its competitors revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Alpha Appalachia N/A N/A -0.39
Alpha Appalachia Competitors $934.53 million -$31.41 million 186.41

Alpha Appalachia’s competitors have higher revenue, but lower earnings than Alpha Appalachia. Alpha Appalachia is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of recent recommendations for Alpha Appalachia and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alpha Appalachia 0 0 0 0 N/A
Alpha Appalachia Competitors 214 665 1055 22 2.45

As a group, “Coal” companies have a potential upside of 18.09%. Given Alpha Appalachia’s competitors higher possible upside, analysts clearly believe Alpha Appalachia has less favorable growth aspects than its competitors.

Profitability

This table compares Alpha Appalachia and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Alpha Appalachia N/A N/A N/A
Alpha Appalachia Competitors -228.44% 6.50% 2.44%

Summary

Alpha Appalachia competitors beat Alpha Appalachia on 7 of the 8 factors compared.

About Alpha Appalachia

Massey Energy Company (Massey) is a coal producer in the United States. The Company produces, processes and sells bituminous coal of various steam and metallurgical grades, primarily of a low sulfur content, through its 25 processing and shipping centers (Resource Groups), many of which receive coal from multiple mines. At January 31, 2011, the Company operated 84 mines, including 66 underground mines (one of which employs both room and pillar and longwall mining) and 18 surface mines (with 12 highwall miners in operation) in West Virginia, Kentucky and Virginia. On April 19, 2010, the Company completed the acquisition of Cumberland Resources Corporation and certain affiliated entities (Cumberland). The Cumberland operations include primarily underground coal mines in Southwestern Virginia and Eastern Kentucky. The Company owns a majority interest in Coalsolv, LLC (Coalsolv).

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