China Coal Energy (OTCMKTS:CCOZY – Get Free Report) and SunCoke Energy (NYSE:SXC – Get Free Report) are both energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, institutional ownership, risk, analyst recommendations and profitability.
Dividends
China Coal Energy pays an annual dividend of $1.15 per share and has a dividend yield of 4.7%. SunCoke Energy pays an annual dividend of $0.48 per share and has a dividend yield of 5.7%. China Coal Energy pays out 28.9% of its earnings in the form of a dividend. SunCoke Energy pays out 44.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. SunCoke Energy has increased its dividend for 4 consecutive years. SunCoke Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Insider & Institutional Ownership
90.5% of SunCoke Energy shares are held by institutional investors. 1.5% of SunCoke Energy shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| China Coal Energy | 1 | 0 | 0 | 0 | 1.00 |
| SunCoke Energy | 0 | 0 | 1 | 0 | 3.00 |
SunCoke Energy has a consensus price target of $13.00, suggesting a potential upside of 54.58%. Given SunCoke Energy’s stronger consensus rating and higher probable upside, analysts plainly believe SunCoke Energy is more favorable than China Coal Energy.
Volatility & Risk
China Coal Energy has a beta of -0.2, indicating that its stock price is 120% less volatile than the S&P 500. Comparatively, SunCoke Energy has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500.
Profitability
This table compares China Coal Energy and SunCoke Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| China Coal Energy | N/A | N/A | N/A |
| SunCoke Energy | 4.95% | 13.40% | 5.61% |
Valuation & Earnings
This table compares China Coal Energy and SunCoke Energy”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| China Coal Energy | $27.30 billion | 0.59 | $2.85 billion | $3.98 | 6.16 |
| SunCoke Energy | $1.94 billion | 0.37 | $95.90 million | $1.09 | 7.72 |
China Coal Energy has higher revenue and earnings than SunCoke Energy. China Coal Energy is trading at a lower price-to-earnings ratio than SunCoke Energy, indicating that it is currently the more affordable of the two stocks.
Summary
SunCoke Energy beats China Coal Energy on 12 of the 17 factors compared between the two stocks.
About China Coal Energy
China Coal Energy Company Limited primarily engages in the coal production and trading and coal chemical businesses in the People's Republic of China and internationally. The company offers polyolefin, methanol, urea, and other coal chemical products. It is also involved in the coal mining equipment manufacturing, pithead power generation, and other activities. The company was founded in 2006 and is based in Beijing, the People's Republic of China. China Coal Energy Company Limited operates as a subsidiary of China National Coal Group Co., Ltd.
About SunCoke Energy
SunCoke Energy, Inc. operates as an independent producer of coke in the Americas and Brazil. The company operates through three segments: Domestic Coke, Brazil Coke, and Logistics. It offers metallurgical and thermal coal. The company also provides handling and/or mixing services to steel, coke, electric utility, coal producing, and other manufacturing based customers. In addition, it owns and operates cokemaking facilities in the United States and Brazil. The company was founded in 1960 and is headquartered in Lisle, Illinois.
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