Cloud Peak Energy (NYSE: CLD) and CNX Coal Resources (NYSE:CNXC) are both small-cap oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, earnings, profitabiliy, institutional ownership and analyst recommendations.

Analyst Ratings

This is a summary of current ratings for Cloud Peak Energy and CNX Coal Resources, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cloud Peak Energy 0 7 2 0 2.22
CNX Coal Resources 0 1 5 0 2.83

Cloud Peak Energy presently has a consensus target price of $5.29, suggesting a potential upside of 67.27%. CNX Coal Resources has a consensus target price of $21.20, suggesting a potential upside of 31.68%. Given Cloud Peak Energy’s higher possible upside, equities research analysts plainly believe Cloud Peak Energy is more favorable than CNX Coal Resources.

Profitability

This table compares Cloud Peak Energy and CNX Coal Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cloud Peak Energy -0.47% 0.54% 0.31%
CNX Coal Resources 11.26% 22.89% 7.21%

Dividends

CNX Coal Resources pays an annual dividend of $2.05 per share and has a dividend yield of 12.7%. Cloud Peak Energy does not pay a dividend. CNX Coal Resources pays out 134.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation & Earnings

This table compares Cloud Peak Energy and CNX Coal Resources’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Cloud Peak Energy $841.33 million 0.28 $118.87 million ($0.03) -105.30
CNX Coal Resources $301.84 million 1.24 $87.51 million $1.52 10.59

Cloud Peak Energy has higher revenue and earnings than CNX Coal Resources. Cloud Peak Energy is trading at a lower price-to-earnings ratio than CNX Coal Resources, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

82.1% of Cloud Peak Energy shares are owned by institutional investors. Comparatively, 60.8% of CNX Coal Resources shares are owned by institutional investors. 2.5% of Cloud Peak Energy shares are owned 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.

Risk and Volatility

Cloud Peak Energy has a beta of 1.42, meaning that its share price is 42% more volatile than the S&P 500. Comparatively, CNX Coal Resources has a beta of 1.51, meaning that its share price is 51% more volatile than the S&P 500.

Summary

CNX Coal Resources beats Cloud Peak Energy on 9 of the 16 factors compared between the two stocks.

Cloud Peak Energy Company Profile

Cloud Peak Energy Inc. is a producer of coal in the United States of America and the Powder River Basin (PRB). In the PRB, the Company owns and operates three surface coal mines: the Antelope Mine, the Cordero Rojo Mine and the Spring Creek Mine. Its segments include Owned and Operated Mines, and Logistics and Related Activities. Its Owned and Operated Mines segment includes its Antelope Mine, Cordero Rojo Mine, and Spring Creek Mine. The Logistics and Related Activities segment includes the services it provides to its international and certain of its domestic customers where it delivers coal to the customer at a terminal or the customer’s plant or other delivery point, remote from its mine site. As of December 31, 2016, the Company also operated two development projects, both located in the Northern PRB: Youngs Creek Project and Big Metal Project. The Company’s Antelope Mine and Cordero Rojo Mine are located in Wyoming and its Spring Creek Mine is located in Montana.

CNX Coal Resources Company Profile

CNX Coal Resources LP is a producer of high-British thermal units (Btu) thermal coal in the Northern Appalachian Basin and the eastern United States. It is engaged in the management and development of coal operations of CONSOL Energy Inc. (CONSOL Energy) in Pennsylvania. It holds interest in, and operational control over, CONSOL Energy’s Pennsylvania Mining Complex, which consists of three underground mines and related infrastructure that produce high-Btu bituminous thermal coal that is sold primarily to electric utilities in the eastern United States. The Pennsylvania Mining Complex includes the Bailey Mine, the Enlow Fork Mine and the Harvey Mine. It mines its reserves from the Pittsburgh Number eight Coal Seam, which is a contiguous formation of uniform, Btu thermal coal. Its Bailey Mine is located in Enon, Pennsylvania. Its Enlow Fork Mine is located directly north of the Bailey Mine. Its Harvey Mine is located directly east of the Bailey and Enlow Fork Mines.

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