Alliance Resource Partners (NASDAQ:ARLP) and Puda Coal (OTCMKTS:PUDA) are both oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.
This table compares Alliance Resource Partners and Puda Coal’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Alliance Resource Partners||19.96%||25.32%||13.86%|
This is a summary of recent ratings for Alliance Resource Partners and Puda Coal, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Alliance Resource Partners||0||1||3||0||2.75|
Alliance Resource Partners currently has a consensus price target of $23.50, indicating a potential upside of 30.77%. Given Alliance Resource Partners’ higher possible upside, research analysts plainly believe Alliance Resource Partners is more favorable than Puda Coal.
Alliance Resource Partners pays an annual dividend of $2.10 per share and has a dividend yield of 11.7%. Puda Coal does not pay a dividend. Alliance Resource Partners pays out 73.2% of its earnings in the form of a dividend.
Risk & Volatility
Alliance Resource Partners has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500. Comparatively, Puda Coal has a beta of -23.43, suggesting that its share price is 2,443% less volatile than the S&P 500.
Institutional and Insider Ownership
29.0% of Alliance Resource Partners shares are owned by institutional investors. 44.0% of Alliance Resource Partners shares are owned by insiders. Comparatively, 48.3% of Puda Coal shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Alliance Resource Partners and Puda Coal’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Alliance Resource Partners||$1.80 billion||1.30||$303.63 million||$2.87||6.26|
Alliance Resource Partners has higher revenue and earnings than Puda Coal.
Alliance Resource Partners beats Puda Coal on 9 of the 11 factors compared between the two stocks.
Alliance Resource Partners Company Profile
Alliance Resource Partners, L.P. produces and markets coal primarily to utilities and industrial users in the United States. The company operates through two segments, Illinois Basin and Appalachia. It produces a range of steam and metallurgical coal with sulfur and heat contents. The company operates eight underground mining complexes in Illinois, Indiana, Kentucky, Maryland, and West Virginia. It also leases land and operates a coal loading terminal on the Ohio River at Mt. Vernon, Indiana; and buys and resells coal, as well as owns equity interests in various oil and gas mineral interests and gas compression services located within producing basins in the continental United States. In addition, the company offers various industrial and mining technology products and services, such as miner and equipment tracking systems, and proximity detection systems. As of December 31, 2017, it had approximately 1.67 billion tons of proven and probable coal reserves in Illinois, Indiana, Kentucky, Maryland, Pennsylvania, and West Virginia. Alliance Resource Management GP, LLC serves as the general partner of the company. The company was founded in 1971 and is headquartered in Tulsa, Oklahoma. Alliance Resource Partners, L.P. is a subsidiary of Alliance Holdings GP, L.P.
Puda Coal Company Profile
Puda Coal, Inc., through its indirect equity ownership in Shanxi Puda Coal Group Co., Ltd., supplies metallurgical coking coal in the People's Republic of China. Its processed coking coal is used by coke and steel producers for the purpose of making the coke required for the steel manufacturing process. The company primarily markets its products in the Shanxi Province, Inner Mongolia Autonomous Region, Hebei Province, Beijing, and Tianjin. It also operates as an acquirer and consolidator of two coal mine consolidation projects, including the Pinglu project in Pinglu County; and the Jianhe project in Huozhou County, Shanxi Province. The company was founded in 2004 and is headquartered in Taiyuan, the People's Republic of China.
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