Peabody Energy (NYSE:BTU) & NACCO Industries (NYSE:NC) Critical Comparison

Peabody Energy (NYSE:BTUGet Rating) and NACCO Industries (NYSE:NCGet Rating) are both oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, risk, earnings, institutional ownership, analyst recommendations, valuation and profitability.

Valuation & Earnings

This table compares Peabody Energy and NACCO Industries’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Peabody Energy $3.32 billion 1.07 $360.10 million $2.39 10.35
NACCO Industries $191.85 million 2.25 $48.13 million $7.17 8.23

Peabody Energy has higher revenue and earnings than NACCO Industries. NACCO Industries is trading at a lower price-to-earnings ratio than Peabody Energy, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

69.6% of Peabody Energy shares are held by institutional investors. Comparatively, 50.3% of NACCO Industries shares are held by institutional investors. 0.1% of Peabody Energy shares are held by company insiders. Comparatively, 40.7% of NACCO Industries shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Peabody Energy and NACCO Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Peabody Energy 9.55% 42.49% 12.92%
NACCO Industries 25.65% 15.07% 10.44%

Risk and Volatility

Peabody Energy has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500. Comparatively, NACCO Industries has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Peabody Energy and NACCO Industries, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Peabody Energy 0 1 2 0 2.67
NACCO Industries 0 0 0 0 N/A

Peabody Energy presently has a consensus target price of $29.33, indicating a potential upside of 18.57%. Given Peabody Energy’s higher probable upside, research analysts plainly believe Peabody Energy is more favorable than NACCO Industries.

Summary

Peabody Energy beats NACCO Industries on 9 of the 13 factors compared between the two stocks.

Peabody Energy Company Profile (Get Rating)

Peabody Energy Corporation engages in coal mining business in the United States, Japan, Taiwan, Australia, India, Indonesia, China, Vietnam, South Korea, and internationally. The company operates through Seaborne Thermal Mining, Seaborne Metallurgical Mining, Powder River Basin Mining, and Other U.S. Thermal Mining segments. It is involved in mining, preparation, and sale of thermal coal primarily to electric utilities; mining bituminous and sub-bituminous coal deposits; and mining metallurgical coal, such as hard coking coal, semi-hard coking coal, semi-soft coking coal, and pulverized coal injection coal. The company supplies coal primarily to electricity generators, industrial facilities, and steel manufacturers. As of December 31, 2021, it owned interests in 17 coal mining operations located in the United States and Australia; and had approximately 2.5 billion tons of proven and probable coal reserves and approximately 450,000 acres of surface property through ownership and lease agreements. The company also engages in direct and brokered trading of coal and freight-related contracts, as well as provides transportation-related services. Peabody Energy Corporation was founded in 1883 and is headquartered in St. Louis, Missouri.

NACCO Industries Company Profile (Get Rating)

NACCO Industries, Inc., together with its subsidiaries, engages in the natural resources business. The company operates through three segments: Coal Mining, North American Mining, and Minerals Management. The Coal Mining segment operates surface coal mines under long-term contracts for power generation companies and an activated carbon producer in North Dakota, Texas, Mississippi, and Louisiana in the United States, as well as Navajo Nation in New Mexico. The North American Mining segment provides value-added contract mining and other services for producers of aggregates, lithium, and other minerals; and contract mining services for independently owned mines and quarries in Florida, Texas, Arkansas, and Indiana. The Minerals Management segment is involved in the leasing of its royalty and mineral interests to third-party exploration and production companies, and other mining companies, which grants them the rights to explore, develop, mine, produce, market, and sell gas, oil, and coal. The company was founded in 1913 and is headquartered in Cleveland, Ohio.

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