Westmoreland Resource Partners (WMLP) and Cloud Peak Energy (CLD) Critical Analysis

Westmoreland Resource Partners (NYSE:WMLP) and Cloud Peak Energy (NYSE:CLD) are both oils/energy companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, dividends, valuation, risk, institutional ownership, analyst recommendations and earnings.

Valuation and Earnings

This table compares Westmoreland Resource Partners and Cloud Peak Energy’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Westmoreland Resource Partners N/A N/A N/A N/A N/A
Cloud Peak Energy $887.71 million 0.03 -$6.63 million ($0.43) -0.81

Westmoreland Resource Partners has higher earnings, but lower revenue than Cloud Peak Energy.

Insider & Institutional Ownership

0.4% of Westmoreland Resource Partners shares are held by institutional investors. Comparatively, 78.2% of Cloud Peak Energy shares are held by institutional investors. 2.0% of Westmoreland Resource Partners shares are held by company insiders. Comparatively, 3.2% of Cloud Peak Energy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Westmoreland Resource Partners and Cloud Peak Energy, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Westmoreland Resource Partners 0 0 0 0 N/A
Cloud Peak Energy 2 4 1 0 1.86

Cloud Peak Energy has a consensus price target of $3.40, suggesting a potential upside of 871.43%. Given Cloud Peak Energy’s higher probable upside, analysts plainly believe Cloud Peak Energy is more favorable than Westmoreland Resource Partners.

Dividends

Westmoreland Resource Partners pays an annual dividend of $0.12 per share and has a dividend yield of 5.8%. Cloud Peak Energy does not pay a dividend.

Profitability

This table compares Westmoreland Resource Partners and Cloud Peak Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Westmoreland Resource Partners N/A N/A N/A
Cloud Peak Energy -0.81% -3.66% -2.16%

Summary

Cloud Peak Energy beats Westmoreland Resource Partners on 5 of the 9 factors compared between the two stocks.

Westmoreland Resource Partners Company Profile

Westmoreland Resource Partners, LP, together with its subsidiaries, produces and markets thermal coal in the United States. The company also produces surface mined coal. It operates 1 surface mine in Wyoming; and 4 active mining complexes in Ohio comprising 13 surface mines. The company markets its coal to electric utilities with coal-fired power plants under coal sales contracts; and electric cooperatives, municipalities, and industrial customers in Wyoming, Kentucky, Michigan, Ohio, and West Virginia. Westmoreland Resources GP, LLC operates as the general partner of the company. The company was formerly known as Oxford Resource Partners, LP and changed its name to Westmoreland Resource Partners, LP in January 2015. The company was founded in 1985 and is based in Englewood, Colorado. Westmoreland Resource Partners, LP is a subsidiary of Westmoreland Coal Company.

Cloud Peak Energy Company Profile

Cloud Peak Energy Inc. produces coal in the Powder River Basin and the United States. The company operates through Owned and Operated Mines, and Logistics and Related Activities. It owns and operates three surface coal mines comprising the Antelope Mine and the Cordero Rojo Mine located in Wyoming; and the Spring Creek Mine located in Montana. These mines produce subbituminous thermal coal with low sulfur content. The company sells its coal primarily to domestic and foreign electric utilities. As of December 31, 2017, it controlled approximately 1.0 billion tons of proven and probable reserves. The company also has two development projects comprising the Youngs Creek project, an undeveloped surface mine project located in Wyoming; and the Big Metal project located in southeast Montana. In addition, it offers logistics and related services, including the purchase of coal from third parties, as well as the contracting and coordination of the transportation and other handling services from third-party operators. Cloud Peak Energy Inc. was founded in 1993 and is headquartered in Gillette, Wyoming.

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