Critical Review: China Coal Energy (CCOZY) and CONSOL Coal Resources (CCR)

China Coal Energy (OTCMKTS: CCOZY) and CONSOL Coal Resources (NYSE:CCR) are both small-cap oils/energy companies, but which is the better business? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, valuation, analyst recommendations and institutional ownership.

Analyst Recommendations

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This is a breakdown of current ratings and recommmendations for China Coal Energy and CONSOL Coal Resources, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China Coal Energy 0 0 0 0 N/A
CONSOL Coal Resources 0 1 5 0 2.83

CONSOL Coal Resources has a consensus target price of $20.40, indicating a potential upside of 46.24%. Given CONSOL Coal Resources’ higher probable upside, analysts clearly believe CONSOL Coal Resources is more favorable than China Coal Energy.

Risk and Volatility

China Coal Energy has a beta of 1.64, meaning that its share price is 64% more volatile than the S&P 500. Comparatively, CONSOL Coal Resources has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500.

Valuation & Earnings

This table compares China Coal Energy and CONSOL Coal Resources’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
China Coal Energy $12.01 billion 0.14 $258.12 million $0.39 20.87
CONSOL Coal Resources $322.78 million 1.19 $40.46 million $1.46 9.55

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

Insider & Institutional Ownership

24.1% of CONSOL Coal Resources shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

China Coal Energy pays an annual dividend of $0.09 per share and has a dividend yield of 1.1%. CONSOL Coal Resources pays an annual dividend of $2.05 per share and has a dividend yield of 14.7%. China Coal Energy pays out 23.1% of its earnings in the form of a dividend. CONSOL Coal Resources pays out 140.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares China Coal Energy and CONSOL Coal Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
China Coal Energy 5.27% 3.61% 1.53%
CONSOL Coal Resources 10.56% 21.19% 7.28%

Summary

CONSOL Coal Resources beats China Coal Energy on 9 of the 14 factors compared between the two stocks.

China Coal Energy Company Profile

China Coal Energy Company Limited engages in the production and sale of coal in the People’s Republic of China and internationally. The company operates through Coal, Coal-Chemical Product, and Mining Machinery segments. The company primarily offers thermal and coking coal. It is also involved in the production and sale of coke, methanol, urea, olefin, synthetic ammonia, and other coal chemical products; design, research and development, manufacture, and sale of coal mining machinery and equipment; provision of after-sales services; and production and sale of electricity, as well as primary aluminum. In addition, the company provides coal mining, investment management, and tendering services; imports and exports coal products; and grants loans and takes deposits. The company was founded in 2006 and is based in Beijing, the People’s Republic of China. China Coal Energy Company Limited is a subsidiary of China National Coal Group Corporation.

CONSOL Coal Resources Company Profile

Consol Coal Resources LP, formerly CNX Coal Resources LP, is a producer of high-British thermal units (Btu) thermal coal. 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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