China Shenhua Energy (OTCMKTS:CSUAY – Get Free Report) and SunCoke Energy (NYSE:SXC – Get Free Report) are both energy companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, dividends, profitability, earnings, risk, analyst recommendations and institutional ownership.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for China Shenhua Energy and SunCoke Energy, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| China Shenhua Energy | 0 | 1 | 0 | 0 | 2.00 |
| SunCoke Energy | 0 | 0 | 1 | 0 | 3.00 |
China Shenhua Energy currently has a consensus price target of $32.50, suggesting a potential upside of 107.27%. SunCoke Energy has a consensus price target of $13.00, suggesting a potential upside of 49.00%. Given China Shenhua Energy’s higher probable upside, equities analysts plainly believe China Shenhua Energy is more favorable than SunCoke Energy.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| China Shenhua Energy | $47.07 billion | 1.66 | $8.68 billion | $1.62 | 9.68 |
| SunCoke Energy | $1.88 billion | 0.39 | $95.90 million | $1.09 | 8.00 |
China Shenhua Energy has higher revenue and earnings than SunCoke Energy. SunCoke Energy is trading at a lower price-to-earnings ratio than China Shenhua Energy, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
90.4% of SunCoke Energy shares are owned by institutional investors. 1.5% of SunCoke Energy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Risk and Volatility
China Shenhua Energy has a beta of 0.23, indicating that its stock price is 77% less volatile than the S&P 500. Comparatively, SunCoke Energy has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500.
Profitability
This table compares China Shenhua Energy and SunCoke Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| China Shenhua Energy | 18.12% | 11.45% | 8.75% |
| SunCoke Energy | 4.95% | 13.40% | 5.61% |
Dividends
China Shenhua Energy pays an annual dividend of $1.06 per share and has a dividend yield of 6.8%. SunCoke Energy pays an annual dividend of $0.48 per share and has a dividend yield of 5.5%. China Shenhua Energy pays out 65.4% of its earnings in the form of a dividend. SunCoke Energy pays out 44.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. SunCoke Energy has increased its dividend for 4 consecutive years.
Summary
China Shenhua Energy beats SunCoke Energy on 9 of the 17 factors compared between the two stocks.
About China Shenhua Energy
China Shenhua Energy Company Limited, together with its subsidiaries, engages in the production and sale of coal and power; railway, port, and shipping transportation; and coal-to-olefins businesses in the People's Republic of China and internationally. It operates through six segments: Coal, Power Generation, Railway, Port, Shipping, and Coal Chemical. The Coal segment produces coal from surface and underground mines; and sells coal to power plants and metallurgical and coal chemical producers. The Power segment generates electric power through thermal, wind, water, and gas; and sells electric power to power grid companies. The Railway segment provides railway transportation services. The Port segment offers loading, transportation, and storage services. The Shipping segment provides shipment transportation services. The Coal Chemical segment produces and sells methanol; and polyethylene and polypropylene, as well as other by-products. The company was incorporated in 2004 and is based in Beijing, the People's Republic of China. China Shenhua Energy Company Limited operates as a subsidiary of China Energy Investment Corporation Limited.
About SunCoke Energy
SunCoke Energy, Inc. operates as an independent producer of coke in the Americas and Brazil. The company operates through three segments: Domestic Coke, Brazil Coke, and Logistics. It offers metallurgical and thermal coal. The company also provides handling and/or mixing services to steel, coke, electric utility, coal producing, and other manufacturing based customers. In addition, it owns and operates cokemaking facilities in the United States and Brazil. The company was founded in 1960 and is headquartered in Lisle, Illinois.
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