Cloud Peak Energy (NYSE: CLD) and NACCO Industries (NYSE:NC) are both small-cap oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, profitability and earnings.
NACCO Industries pays an annual dividend of $1.98 per share and has a dividend yield of 4.6%. Cloud Peak Energy does not pay a dividend. NACCO Industries pays out 31.6% of its earnings in the form of a dividend. Cloud Peak Energy has increased its dividend for 3 consecutive years.
This table compares Cloud Peak Energy and NACCO Industries’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Cloud Peak Energy||$800.44 million||0.39||$21.84 million||$0.03||138.05|
|NACCO Industries||$856.44 million||0.34||$29.60 million||$6.26||6.82|
NACCO Industries has higher revenue and earnings than Cloud Peak Energy. NACCO Industries is trading at a lower price-to-earnings ratio than Cloud Peak Energy, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
79.5% of Cloud Peak Energy shares are owned by institutional investors. Comparatively, 48.6% of NACCO Industries shares are owned by institutional investors. 2.5% of Cloud Peak Energy shares are owned by insiders. Comparatively, 30.6% of NACCO Industries shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This table compares Cloud Peak Energy and NACCO Industries’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Cloud Peak Energy||N/A||0.39%||0.23%|
Volatility & Risk
Cloud Peak Energy has a beta of 1.61, meaning that its share price is 61% more volatile than the S&P 500. Comparatively, NACCO Industries has a beta of 0.44, meaning that its share price is 56% less volatile than the S&P 500.
This is a breakdown of current recommendations and price targets for Cloud Peak Energy and NACCO Industries, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Cloud Peak Energy||0||7||1||0||2.13|
Cloud Peak Energy currently has a consensus price target of $5.17, suggesting a potential upside of 24.80%. Given Cloud Peak Energy’s higher probable upside, analysts clearly believe Cloud Peak Energy is more favorable than NACCO Industries.
About Cloud Peak Energy
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.
About NACCO Industries
NACCO Industries, Inc. is a holding company. The Company’s principal business includes mining. The Company operates through the NACoal segment. The Company’s subsidiary includes The North American Coal Corporation (NACoal). The Company’s NACoal segment mines coal for use in power generation and provides mining services for other natural resources companies. Coal is surface mined from NACoal’s mines in North Dakota, Texas, Mississippi, Louisiana and the Navajo Nation in New Mexico. NACoal’s operating coal mining subsidiaries include Bisti Fuels Company, LLC (Bisti), Caddo Creek Resources Company, LLC (Caddo Creek), Camino Real Fuels, LLC (Camino Real), The Coteau Properties Company (Coteau), Coyote Creek Mining Company, LLC (Coyote Creek), Demery Resources Company, LLC (Demery), The Falkirk Mining Company (Falkirk), Liberty Fuels Company, LLC (Liberty), Mississippi Lignite Mining Company (MLMC) and The Sabine Mining Company (Sabine).
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