Comparing Foresight Energy (FELP) & Yanzhou Coal Mining (YZCAY)

Foresight Energy (NYSE: FELP) and Yanzhou Coal Mining (OTCMKTS:YZCAY) are both oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Foresight Energy and Yanzhou Coal Mining, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Foresight Energy 0 3 0 0 2.00
Yanzhou Coal Mining 0 0 0 0 N/A

Foresight Energy presently has a consensus target price of $4.83, indicating a potential upside of 33.52%. Given Foresight Energy’s higher probable upside, research analysts plainly believe Foresight Energy is more favorable than Yanzhou Coal Mining.

Valuation and Earnings

This table compares Foresight Energy and Yanzhou Coal Mining’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Foresight Energy $954.53 million 0.29 -$215.23 million ($1.53) -2.37
Yanzhou Coal Mining $5.01 billion 1.27 $312.09 million N/A N/A

Yanzhou Coal Mining has higher revenue and earnings than Foresight Energy.

Profitability

This table compares Foresight Energy and Yanzhou Coal Mining’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Foresight Energy -18.78% -3.93% -1.18%
Yanzhou Coal Mining N/A N/A N/A

Insider & Institutional Ownership

11.7% of Foresight Energy shares are held by institutional investors. Comparatively, 0.0% of Yanzhou Coal Mining shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

Foresight Energy pays an annual dividend of $0.24 per share and has a dividend yield of 6.6%. Yanzhou Coal Mining pays an annual dividend of $0.14 per share and has a dividend yield of 1.1%. Foresight Energy pays out -15.7% of its earnings in the form of a dividend.

Risk & Volatility

Foresight Energy has a beta of 0.81, indicating that its share price is 19% less volatile than the S&P 500. Comparatively, Yanzhou Coal Mining has a beta of 1.35, indicating that its share price is 35% more volatile than the S&P 500.

Summary

Yanzhou Coal Mining beats Foresight Energy on 7 of the 11 factors compared between the two stocks.

Foresight Energy Company Profile

Foresight Energy LP is engaged in the mining and marketing of coal from reserves and operations located in the Illinois Basin. As of December 31, 2016, the Company controlled 2.1 billion tons of coal in the state of Illinois. Its reserves consist principally of three contiguous blocks of uniform, thick, high heat content (high Btu) thermal coal, which are used for longwall operations. The Company operates four underground mining complexes in the Illinois Basin, including Williamson, Sugar Camp, Hillsboro and Macoupin. Its mining complexes operate in the Illinois Basin with approximately two located in Southern Illinois and over two located in Central Illinois. Williamson, Sugar Camp and Hillsboro are longwall operations, and Macoupin is a continuous miner operation. The Company markets and sells its coal to electric utility and industrial companies in the eastern half of the United States as well as internationally (primarily into Europe).

Yanzhou Coal Mining Company Profile

Yanzhou Coal Mining Company Limited is a coal producer in China and Australia, which is primarily engaged in the mining, washing, processing and distribution of coal through railway transportation. The Company’s segments include Coal mining, which is engaged in underground and open-cut mining, preparation and sales of coal and potash mineral exploration; Coal railway transportation, which is engaged in the provision of railway transportation services; Methanol, electricity and heat supply, which is engaged in the production and sales of methanol and electricity and related heat supply services, and Equipment manufacturing, which is engaged in the manufacturing of coal mining and equipment. The Company offers a range of coal products and other mixed coal products, including thermal coal, semi-hard coking coal, semi-soft coking coal, pulverized coal injection (PCI) coal and other mixed coal products.

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