Head-To-Head Review: Peabody Energy (BTU) vs. Puda Coal (PUDA)

Peabody Energy (NYSE:BTU) and Puda Coal (OTCMKTS:PUDA) are both oils/energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, valuation, risk, analyst recommendations and earnings.

Insider and Institutional Ownership

99.2% of Peabody Energy shares are owned by institutional investors. 0.4% of Peabody Energy shares are owned by company insiders. Comparatively, 48.3% of Puda Coal shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Peabody Energy pays an annual dividend of $0.52 per share and has a dividend yield of 1.5%. Puda Coal does not pay a dividend.

Profitability

This table compares Peabody Energy and Puda Coal’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Peabody Energy 13.20% 19.01% 8.18%
Puda Coal N/A N/A N/A

Analyst Ratings

This is a breakdown of current recommendations and price targets for Peabody Energy and Puda Coal, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Peabody Energy 0 4 4 0 2.50
Puda Coal 0 0 0 0 N/A

Peabody Energy presently has a consensus target price of $45.00, indicating a potential upside of 27.77%. Given Peabody Energy’s higher possible upside, analysts clearly believe Peabody Energy is more favorable than Puda Coal.

Volatility and Risk

Peabody Energy has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500. Comparatively, Puda Coal has a beta of -25.56, meaning that its share price is 2,656% less volatile than the S&P 500.

Valuation and Earnings

This table compares Peabody Energy and Puda Coal’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Peabody Energy $5.58 billion 0.72 $461.60 million N/A N/A
Puda Coal N/A N/A N/A N/A N/A

Peabody Energy has higher revenue and earnings than Puda Coal.

Summary

Peabody Energy beats Puda Coal on 9 of the 10 factors compared between the two stocks.

Peabody Energy Company Profile

Peabody Energy Corporation engages in coal mining business. The company operates through six segments: Powder River Basin Mining, Midwestern U.S. Mining, Western U.S. Mining, Australian Metallurgical Mining, Australian Thermal Mining, and Trading and Brokerage. It is involved in mining, preparation, and sale of thermal coal primarily to electric utilities; and metallurgical coal that include hard coking coal, semi-hard coking coal, semi-soft coking coal, and low-volatile pulverized coal injection for industrial customers. The company supplies coal primarily to electricity generators, industrial facilities, and steel manufacturers. It owns interests in 23 coal mining operations located in the United States and Australia. The company also engages in direct and brokered trading of coal and freight-related contracts, as well as provides transportation-related services, which involves financial derivative contracts and physical contracts. As of December 31, 2017, it had 5.2 billion tons of proven and probable coal reserves and approximately 600,000 acres of surface property through ownership and lease agreements. Peabody Energy Corporation was founded in 1883 and is headquartered in St. Louis, Missouri. On April 13, 2016, Peabody Energy Corporation and its subsidiaries filed a voluntary petition for reorganization under Chapter 11 in the United States Bankruptcy Court for the Eastern District of Missouri.

Puda Coal Company Profile

Puda Coal, Inc., through its indirect equity ownership in Shanxi Puda Coal Group Co., Ltd., supplies metallurgical coking coal in the People's Republic of China. Its processed coking coal is used by coke and steel producers for the purpose of making the coke required for the steel manufacturing process. The company primarily markets its products in the Shanxi Province, Inner Mongolia Autonomous Region, Hebei Province, Beijing, and Tianjin. It also operates as an acquirer and consolidator of two coal mine consolidation projects, including the Pinglu project in Pinglu County; and the Jianhe project in Huozhou County, Shanxi Province. The company was founded in 2004 and is headquartered in Taiyuan, the People's Republic of China.

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