Prospect Global Resources (OTCMKTS: PGRX) and Peabody Energy (NYSE:BTU) are both basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, profitability, institutional ownership, earnings and valuation.
Insider and Institutional Ownership
95.1% of Peabody Energy shares are held by institutional investors. 37.0% of Prospect Global Resources shares are held by company insiders. Comparatively, 1.3% of Peabody Energy shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This table compares Prospect Global Resources and Peabody Energy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Prospect Global Resources||N/A||N/A||N/A|
Earnings & Valuation
This table compares Prospect Global Resources and Peabody Energy’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Prospect Global Resources||N/A||N/A||N/A||N/A||N/A|
|Peabody Energy||$4.72 billion||0.75||-$729.30 million||N/A||N/A|
Prospect Global Resources has higher earnings, but lower revenue than Peabody Energy.
This is a summary of recent ratings and price targets for Prospect Global Resources and Peabody Energy, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Prospect Global Resources||0||0||0||0||N/A|
Peabody Energy has a consensus price target of $35.63, indicating a potential upside of 5.09%. Given Peabody Energy’s higher possible upside, analysts plainly believe Peabody Energy is more favorable than Prospect Global Resources.
Peabody Energy beats Prospect Global Resources on 7 of the 8 factors compared between the two stocks.
About Prospect Global Resources
Prospect Global Resources Inc. (Prospect) is an engaged in the exploration and development of a potash deposit located in the Holbrook Basin of eastern Arizona, which it refers to as the Holbrook Project. The Holbrook Project consists of permits and leases on 147 mineral estate sections spanning approximately 90,000-acres in the Holbrook Basin of eastern Arizona, along the southern edge of the Colorado Plateau. The Company holds interest and control the Holbrook Project through its wholly owned subsidiary, AWP. Through AWP, the Company holds potash exploration permits on 38 Arizona state sections, own the mineral rights on eight private sections and hold leases for the mineral rights on 101 private sections which, in total, cover approximately 90,000-acres.
About Peabody Energy
Peabody Energy Corporation is a coal company. The Company’s segments include Powder River Basin Mining, Midwestern U.S. Mining, Western U.S. Mining, Australian Metallurgical Mining, Australian Thermal Mining, Trading and Brokerage, and Corporate and Other. Its Powder River Basin Mining operations consist of its mines in Wyoming. Midwestern U.S. Mining operations reflect the Company’s Illinois and Indiana mining operations. Western U.S. Mining operations reflect the aggregation of the New Mexico, Arizona and Colorado mining operations. Australian Metallurgical Mining operations consist of mines in Queensland and New South Wales, Australia. Australian Thermal Mining operations consist of mines in New South Wales, Australia. Its Trading and Brokerage segment engages in the direct and brokered trading of coal and freight-related contracts through the trading and business offices. Its Corporate and Other includes selling and administrative expenses, and corporate hedging activities.
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