SunCoke Energy (NYSE: SXC) and SunCoke Energy Partners (NYSE:SXCP) are both small-cap oils/energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, risk, valuation and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations for SunCoke Energy and SunCoke Energy Partners, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SunCoke Energy 0 0 1 0 3.00
SunCoke Energy Partners 0 0 1 0 3.00

Volatility and Risk

SunCoke Energy has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500. Comparatively, SunCoke Energy Partners has a beta of 1.37, suggesting that its stock price is 37% more volatile than the S&P 500.

Profitability

This table compares SunCoke Energy and SunCoke Energy Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SunCoke Energy 9.19% 3.13% 0.84%
SunCoke Energy Partners -2.28% 14.57% 4.86%

Insider and Institutional Ownership

91.1% of SunCoke Energy shares are owned by institutional investors. Comparatively, 13.3% of SunCoke Energy Partners shares are owned by institutional investors. 3.9% of SunCoke Energy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

SunCoke Energy Partners pays an annual dividend of $2.38 per share and has a dividend yield of 12.3%. SunCoke Energy does not pay a dividend. SunCoke Energy Partners pays out -128.6% of its earnings in the form of a dividend. SunCoke Energy has raised its dividend for 2 consecutive years.

Valuation and Earnings

This table compares SunCoke Energy and SunCoke Energy Partners’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SunCoke Energy $1.33 billion 0.47 $14.40 million $1.87 5.21
SunCoke Energy Partners $845.60 million 1.06 $119.10 million ($1.85) -10.49

SunCoke Energy Partners has lower revenue, but higher earnings than SunCoke Energy. SunCoke Energy Partners is trading at a lower price-to-earnings ratio than SunCoke Energy, indicating that it is currently the more affordable of the two stocks.

SunCoke Energy Company Profile

SunCoke Energy, Inc. is a producer of coke in the Americas. The Company’s segments include Domestic Coke, Brazil Coke, Coal Logistics, and Corporate and Other. The Domestic Coke segment consists of its Jewell Coke Company, L.P. (Jewell), Indiana Harbor Coke Company (Indiana Harbor), Haverhill Coke Company LLC (Haverhill), Gateway Energy and Coke Company, LLC (Granite City) and Middletown Coke Company, LLC (Middletown) cokemaking and heat recovery operations. The Brazil Coke segment consists of its operations in Vitoria, Brazil, where the Company operate a cokemaking facility, ArcelorMittal Brasil S.A. The Coal Logistics segment consists of its Convent Marine Terminal (CMT), Kanawha River Terminals, LLC (KRT), SunCoke Lake Terminal, LLC (Lake Terminal) and Dismal River Terminal, LLC (DRT) coal handling and/or mixing service operations. It designs, develops, builds, owns and operates five cokemaking facilities in the United States, as of December 31, 2016.

SunCoke Energy Partners 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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