Analyzing BHP Billiton (BBL) and CONSOL Coal Resources (CCR)

BHP Billiton (NYSE: BBL) and CONSOL Coal Resources (NYSE:CCR) are both basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, dividends, valuation, earnings, profitability, risk and institutional ownership.

Dividends

BHP Billiton pays an annual dividend of $1.96 per share and has a dividend yield of 4.2%. CONSOL Coal Resources pays an annual dividend of $2.05 per share and has a dividend yield of 12.9%. BHP Billiton pays out 77.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CONSOL Coal Resources pays out 140.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Volatility & Risk

BHP Billiton has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500. Comparatively, CONSOL Coal Resources has a beta of 1.29, indicating that its stock price is 29% more volatile than the S&P 500.

Institutional & Insider Ownership

4.2% of BHP Billiton shares are owned by institutional investors. Comparatively, 24.2% of CONSOL Coal Resources shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares BHP Billiton and CONSOL Coal Resources’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BHP Billiton $38.29 billion 1.30 $5.89 billion $2.53 18.56
CONSOL Coal Resources $322.78 million 1.36 $40.46 million $1.46 10.89

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

Analyst Ratings

This is a summary of recent recommendations for BHP Billiton and CONSOL Coal Resources, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BHP Billiton 0 2 4 0 2.67
CONSOL Coal Resources 0 1 5 0 2.83

BHP Billiton presently has a consensus target price of $38.00, suggesting a potential downside of 19.08%. CONSOL Coal Resources has a consensus target price of $20.40, suggesting a potential upside of 28.30%. Given CONSOL Coal Resources’ stronger consensus rating and higher probable upside, analysts plainly believe CONSOL Coal Resources is more favorable than BHP Billiton.

Profitability

This table compares BHP Billiton and CONSOL Coal Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BHP Billiton N/A N/A N/A
CONSOL Coal Resources 13.08% 24.61% 9.25%

Summary

CONSOL Coal Resources beats BHP Billiton on 10 of the 15 factors compared between the two stocks.

About BHP Billiton

BHP Billiton Plc, together with its subsidiaries, discovers, acquires, develops, and markets natural resources worldwide. It operates through four segments: Petroleum, Copper, Iron Ore, and Coal. The company explores for copper, silver, lead, zinc, molybdenum, uranium, gold, and iron ores, as well as metallurgical coal, thermal energy coal, and oil and gas properties. It also engages in the mining, smelting, and refining of nickel; the provision of freight, finance, and administrative services, as well as trading, marketing, and support services; and potash development activities. The company was formerly known as Billiton Plc. The company was incorporated in 1996 and is based in London, the United Kingdom. BHP Billiton Plc is a subsidiary of BHP Billiton Group.

About CONSOL Coal Resources

CONSOL Coal Resources LP produces and sells high-Btu thermal coal in the Northern Appalachian Basin and the eastern United States. It owns a 25% undivided interest in the Pennsylvania mining complex, which consists of three underground mines and related infrastructure that produce high-Btu bituminous thermal coal located primarily in southwestern Pennsylvania. The company markets its thermal coal principally to electric utilities in the eastern United States. CONSOL Coal Resources GP LLC operates as a general partner of the company. The company was formerly known as CNX Coal Resources LP and changed its name to CONSOL Coal Resources LP in November 2017. CONSOL Coal Resources LP was founded in 2015 and is headquartered in Canonsburg, Pennsylvania. CONSOL Coal Resources LP is a subsidiary of CONSOL Energy Inc.

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