Alliance Resource Partners (NASDAQ:ARLP) and Westmoreland Resource Partners (NYSE:WMLP) are both oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, dividends, profitability, risk, earnings, analyst recommendations and institutional ownership.
Insider & Institutional Ownership
29.1% of Alliance Resource Partners shares are owned by institutional investors. Comparatively, 0.4% of Westmoreland Resource Partners shares are owned by institutional investors. 44.0% of Alliance Resource Partners shares are owned by insiders. Comparatively, 2.0% of Westmoreland Resource Partners shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This is a breakdown of current recommendations and price targets for Alliance Resource Partners and Westmoreland Resource Partners, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Alliance Resource Partners||0||1||3||0||2.75|
|Westmoreland Resource Partners||0||0||0||0||N/A|
Alliance Resource Partners currently has a consensus target price of $23.50, indicating a potential upside of 20.08%. Given Alliance Resource Partners’ higher probable upside, analysts clearly believe Alliance Resource Partners is more favorable than Westmoreland Resource Partners.
This table compares Alliance Resource Partners and Westmoreland Resource Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Alliance Resource Partners||19.96%||25.32%||13.86%|
|Westmoreland Resource Partners||N/A||N/A||N/A|
Valuation and Earnings
This table compares Alliance Resource Partners and Westmoreland Resource Partners’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Alliance Resource Partners||$1.80 billion||1.42||$303.63 million||$2.87||6.82|
|Westmoreland Resource Partners||N/A||N/A||N/A||N/A||N/A|
Alliance Resource Partners has higher revenue and earnings than Westmoreland Resource Partners.
Alliance Resource Partners pays an annual dividend of $2.10 per share and has a dividend yield of 10.7%. Westmoreland Resource Partners pays an annual dividend of $0.12 per share and has a dividend yield of 5.8%. Alliance Resource Partners pays out 73.2% of its earnings in the form of a dividend.
Alliance Resource Partners beats Westmoreland Resource Partners on 9 of the 10 factors compared between the two stocks.
Alliance Resource Partners Company Profile
Alliance Resource Partners, L.P. produces and markets coal primarily to utilities and industrial users in the United States. The company operates through two segments, Illinois Basin and Appalachia. It produces a range of steam and metallurgical coal with sulfur and heat contents. The company operates eight underground mining complexes in Illinois, Indiana, Kentucky, Maryland, and West Virginia. It also leases land and operates a coal loading terminal on the Ohio River at Mt. Vernon, Indiana; and buys and resells coal, as well as owns equity interests in various oil and gas mineral interests and gas compression services located within producing basins in the continental United States. In addition, the company offers various industrial and mining technology products and services, such as miner and equipment tracking systems, and proximity detection systems. As of December 31, 2017, it had approximately 1.67 billion tons of proven and probable coal reserves in Illinois, Indiana, Kentucky, Maryland, Pennsylvania, and West Virginia. Alliance Resource Management GP, LLC serves as the general partner of the company. The company was founded in 1971 and is headquartered in Tulsa, Oklahoma. Alliance Resource Partners, L.P. is a subsidiary of Alliance Holdings GP, L.P.
Westmoreland Resource Partners Company Profile
Westmoreland Resource Partners, LP, together with its subsidiaries, produces and markets thermal coal in the United States. The company also produces surface mined coal. It operates 1 surface mine in Wyoming; and 4 active mining complexes in Ohio comprising 13 surface mines. The company markets its coal to electric utilities with coal-fired power plants under coal sales contracts; and electric cooperatives, municipalities, and industrial customers in Wyoming, Kentucky, Michigan, Ohio, and West Virginia. Westmoreland Resources GP, LLC operates as the general partner of the company. The company was formerly known as Oxford Resource Partners, LP and changed its name to Westmoreland Resource Partners, LP in January 2015. The company was founded in 1985 and is based in Englewood, Colorado. Westmoreland Resource Partners, LP is a subsidiary of Westmoreland Coal Company.
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