CONSOL Coal Resources (CCR) vs. Alliance Resource Partners (ARLP) Critical Contrast

CONSOL Coal Resources (NYSE: CCR) and Alliance Resource Partners (NASDAQ:ARLP) are both oils/energy companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.

Analyst Ratings

This is a summary of recent ratings and target prices for CONSOL Coal Resources and Alliance Resource Partners, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CONSOL Coal Resources 0 2 5 0 2.71
Alliance Resource Partners 0 1 3 0 2.75

CONSOL Coal Resources currently has a consensus target price of $20.20, indicating a potential upside of 32.03%. Alliance Resource Partners has a consensus target price of $26.33, indicating a potential upside of 36.44%. Given Alliance Resource Partners’ stronger consensus rating and higher possible upside, analysts clearly believe Alliance Resource Partners is more favorable than CONSOL Coal Resources.

Profitability

This table compares CONSOL Coal Resources and Alliance Resource Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CONSOL Coal Resources 9.94% 21.14% 6.62%
Alliance Resource Partners 18.96% 31.11% 16.14%

Risk & Volatility

CONSOL Coal Resources has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500. Comparatively, Alliance Resource Partners has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500.

Insider & Institutional Ownership

25.6% of CONSOL Coal Resources shares are held by institutional investors. Comparatively, 14.4% of Alliance Resource Partners shares are held by institutional investors. 44.0% of Alliance Resource Partners shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares CONSOL Coal Resources and Alliance Resource Partners’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CONSOL Coal Resources $281.12 million 1.49 $25.85 million $1.38 11.09
Alliance Resource Partners $1.93 billion 1.31 $339.39 million $3.74 5.16

Alliance Resource Partners has higher revenue and earnings than CONSOL Coal Resources. Alliance Resource Partners is trading at a lower price-to-earnings ratio than CONSOL Coal Resources, indicating that it is currently the more affordable of the two stocks.

Dividends

CONSOL Coal Resources pays an annual dividend of $2.05 per share and has a dividend yield of 13.4%. Alliance Resource Partners pays an annual dividend of $2.02 per share and has a dividend yield of 10.5%. CONSOL Coal Resources pays out 148.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Alliance Resource Partners pays out 54.0% of its earnings in the form of a dividend.

Summary

Alliance Resource Partners beats CONSOL Coal Resources on 10 of the 16 factors compared between the two stocks.

CONSOL Coal Resources Company Profile

Consol Coal Resources LP, formerly CNX Coal Resources LP, is a producer of high-British thermal units (Btu) thermal coal. It is engaged in the management and development of coal operations of CONSOL Energy Inc. (CONSOL Energy) in Pennsylvania. It holds interest in, and operational control over, CONSOL Energy’s Pennsylvania Mining Complex, which consists of three underground mines and related infrastructure that produce high-Btu bituminous thermal coal that is sold primarily to electric utilities in the eastern United States. The Pennsylvania Mining Complex includes the Bailey Mine, the Enlow Fork Mine and the Harvey Mine. It mines its reserves from the Pittsburgh Number eight Coal Seam, which is a contiguous formation of uniform, Btu thermal coal. Its Bailey Mine is located in Enon, Pennsylvania. Its Enlow Fork Mine is located directly north of the Bailey Mine. Its Harvey Mine is located directly east of the Bailey and Enlow Fork Mines.

Alliance Resource Partners Company Profile

Alliance Resource Partners, L.P. is a producer and marketer of coal primarily to the United States utilities and industrial users. The Company operates through segments, including Illinois Basin, Appalachia, and Other and Corporate. The Illinois Basin segment consists of various operating segments, including Webster County Coal, LLC’s Dotiki mining complex, Gibson County Coal, LLC’s mining complex, which includes the Gibson North mine and Gibson South mine, Hopkins County Coal, LLC’s mining complex, which includes the Elk Creek mine, the Pleasant View surface mineable reserves and the Fies property, White County Coal, LLC’s, Pattiki mining complex, Warrior Coal, LLC’s mining complex, Sebree Mining, LLC’s mining complex, which includes the Onton mine and River View Coal, LLC mining complex. The Appalachia segment consists of multiple operating segments, including the Mettiki mining complex, the Tunnel Ridge mining complex and the MC Mining mining complex.

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