Peabody Energy Corporation (NYSE: BTU) and Arch Coal, Inc. Class A (NASDAQ:ARCH) are both oils/energy companies, but which is the better stock? We will contrast the two companies based on the strength of their risk, dividends, valuation, institutional ownership, profitability, earnings and analyst recommendations.
Valuation and Earnings
This table compares Peabody Energy Corporation and Arch Coal, Inc. Class A’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Peabody Energy Corporation||$5.24 billion||0.50||$978.90 million||N/A||N/A|
|Arch Coal, Inc. Class A||$2.23 billion||0.81||$382.34 million||N/A||N/A|
This table compares Peabody Energy Corporation and Arch Coal, Inc. Class A’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Peabody Energy Corporation||N/A||N/A||N/A|
|Arch Coal, Inc. Class A||N/A||N/A||N/A|
This is a breakdown of recent ratings and recommmendations for Peabody Energy Corporation and Arch Coal, Inc. Class A, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Peabody Energy Corporation||0||2||5||0||2.71|
|Arch Coal, Inc. Class A||0||1||6||0||2.86|
Peabody Energy Corporation currently has a consensus target price of $35.57, indicating a potential upside of 30.73%. Arch Coal, Inc. Class A has a consensus target price of $94.20, indicating a potential upside of 26.12%. Given Peabody Energy Corporation’s higher possible upside, equities research analysts plainly believe Peabody Energy Corporation is more favorable than Arch Coal, Inc. Class A.
Insider and Institutional Ownership
1.9% of Peabody Energy Corporation shares are owned by institutional investors. 1.3% of Peabody Energy Corporation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Peabody Energy Corporation beats Arch Coal, Inc. Class A on 5 of the 8 factors compared between the two stocks.
Peabody Energy Corporation Company Profile
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.
Arch Coal, Inc. Class A Company Profile
Arch Coal, Inc. is a coal producer. The Company is engaged in the production of thermal and metallurgical coal from surface and underground mines located throughout the United States, for sale to utility, industrial and steel producers both in the United States and around the world. The Company operates mining complexes in West Virginia, Kentucky, Maryland, Virginia, Illinois, Wyoming and Colorado. The Company’s segments include the Powder River Basin and Appalachia. The Powder River Basin segment includes operations in Wyoming. The Appalachia segment includes operations in West Virginia, Kentucky, Maryland and Virginia. The Company also sells coal from operations in Colorado and Illinois. Powder River Basin consists of Black Thunder and Coal Creek mines. The Company’s mines in Appalachia include Coal-Mac, Lone Mountain, Mountain Laurel, Beckley, Vindex, Sentinel and Leer. The Company operates, or contracts out the operation of approximately 10 active mines in the United States.
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