SunocoCorp (NYSE:SUNC – Get Free Report) and Peabody Energy (NYSE:BTU – Get Free Report) are both energy companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, analyst recommendations, profitability, dividends, institutional ownership and risk.
Institutional and Insider Ownership
87.4% of Peabody Energy shares are owned by institutional investors. 0.5% of Peabody Energy 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.
Dividends
SunocoCorp pays an annual dividend of $4.01 per share and has a dividend yield of 5.5%. Peabody Energy pays an annual dividend of $0.30 per share and has a dividend yield of 1.3%. SunocoCorp pays out 138.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Peabody Energy pays out -20.0% of its earnings in the form of a dividend. Peabody Energy has raised its dividend for 1 consecutive years.
Valuation and Earnings
This table compares SunocoCorp and Peabody Energy”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SunocoCorp | $25.20 billion | 0.15 | -$5.00 million | $2.89 | 25.25 |
| Peabody Energy | $4.01 billion | 0.69 | -$52.90 million | ($1.50) | -15.10 |
SunocoCorp has higher revenue and earnings than Peabody Energy. Peabody Energy is trading at a lower price-to-earnings ratio than SunocoCorp, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current ratings for SunocoCorp and Peabody Energy, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SunocoCorp | 1 | 1 | 3 | 1 | 2.67 |
| Peabody Energy | 1 | 3 | 2 | 0 | 2.17 |
SunocoCorp presently has a consensus price target of $81.75, indicating a potential upside of 12.03%. Peabody Energy has a consensus price target of $33.88, indicating a potential upside of 49.56%. Given Peabody Energy’s higher probable upside, analysts plainly believe Peabody Energy is more favorable than SunocoCorp.
Profitability
This table compares SunocoCorp and Peabody Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SunocoCorp | N/A | N/A | N/A |
| Peabody Energy | -4.56% | -5.22% | -3.22% |
Summary
SunocoCorp beats Peabody Energy on 11 of the 17 factors compared between the two stocks.
About SunocoCorp
Sunoco LP is an energy infrastructure and fuel distribution master limited partnership. Sunoco LP is based in DALLAS.
About Peabody Energy
Peabody Energy Corporation engages in coal mining business in the United States, Japan, Taiwan, Australia, India, Brazil, Belgium, Chile, France, Indonesia, China, Vietnam, South Korea, Germany, and internationally. The company operates through Seaborne Thermal, Seaborne Metallurgical, Powder River Basin, Other U.S. Thermal, and Corporate and Other segments. It is involved in the mining, preparation, and sale of thermal coal primarily to electric utilities; mining bituminous and sub-bituminous coal deposits; low sulfur and high British thermal unit thermal coal; and mining metallurgical coal, such as hard coking coal, semi-hard coking coal, semi-soft coking coal, and pulverized coal injection coal. The company supplies coal primarily to electricity generators, industrial facilities, and steel manufacturers. It also engages in marketing and brokering of coal from other coal producers; trading of coal and freight-related contracts, as well as provides transportation-related services. The company was founded in 1883 and is headquartered in Saint Louis, Missouri.
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