China Shenhua Energy (OTCMKTS:CSUAY – Get Free Report) and Peabody Energy (NYSE:BTU – Get Free Report) are both energy companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, earnings, risk, valuation, analyst recommendations, profitability and institutional ownership.
Valuation and Earnings
This table compares China Shenhua Energy and Peabody Energy”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| China Shenhua Energy | $47.07 billion | N/A | $8.68 billion | $1.57 | 12.01 |
| Peabody Energy | $4.24 billion | 0.70 | $370.90 million | $1.03 | 23.79 |
Analyst Ratings
This is a breakdown of recent ratings and price targets for China Shenhua Energy and Peabody Energy, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| China Shenhua Energy | 1 | 1 | 0 | 0 | 1.50 |
| Peabody Energy | 0 | 1 | 4 | 0 | 2.80 |
China Shenhua Energy currently has a consensus target price of $32.50, indicating a potential upside of 72.37%. Peabody Energy has a consensus target price of $23.20, indicating a potential downside of 5.33%. Given China Shenhua Energy’s higher possible upside, equities research analysts plainly believe China Shenhua Energy is more favorable than Peabody Energy.
Dividends
China Shenhua Energy pays an annual dividend of $1.06 per share and has a dividend yield of 5.6%. Peabody Energy pays an annual dividend of $0.30 per share and has a dividend yield of 1.2%. China Shenhua Energy pays out 67.5% of its earnings in the form of a dividend. Peabody Energy pays out 29.1% 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. Peabody Energy has increased its dividend for 1 consecutive years.
Volatility & Risk
China Shenhua Energy has a beta of 0.24, indicating that its stock price is 76% less volatile than the S&P 500. Comparatively, Peabody Energy has a beta of 0.64, indicating that its stock price is 36% less volatile than the S&P 500.
Institutional and Insider Ownership
87.4% of Peabody Energy shares are owned by institutional investors. 0.4% of Peabody Energy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Profitability
This table compares China Shenhua Energy and Peabody Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| China Shenhua Energy | 18.27% | 11.13% | 8.50% |
| Peabody Energy | 3.43% | 4.41% | 2.79% |
About China Shenhua Energy
China Shenhua Energy Company Limited, together with its subsidiaries, engages in the production and sale of coal and power; railway, port, and shipping transportation; and coal-to-olefins businesses in the People's Republic of China and internationally. It operates through six segments: Coal, Power Generation, Railway, Port, Shipping, and Coal Chemical. The Coal segment produces coal from surface and underground mines; and sells coal to power plants and metallurgical and coal chemical producers. The Power segment generates electric power through thermal, wind, water, and gas; and sells electric power to power grid companies. The Railway segment provides railway transportation services. The Port segment offers loading, transportation, and storage services. The Shipping segment provides shipment transportation services. The Coal Chemical segment produces and sells methanol; and polyethylene and polypropylene, as well as other by-products. The company was incorporated in 2004 and is based in Beijing, the People's Republic of China. China Shenhua Energy Company Limited operates as a subsidiary of China Energy Investment Corporation Limited.
About Peabody Energy
Peabody Energy Corporation engages in coal mining business in the United States, Japan, Taiwan, Australia, India, Brazil, Belgium, Chile, France, Indonesia, China, Vietnam, South Korea, Germany, and internationally. The company operates through Seaborne Thermal, Seaborne Metallurgical, Powder River Basin, Other U.S. Thermal, and Corporate and Other segments. It is involved in the mining, preparation, and sale of thermal coal primarily to electric utilities; mining bituminous and sub-bituminous coal deposits; low sulfur and high British thermal unit thermal coal; 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. It also engages in marketing and brokering of coal from other coal producers; trading of coal and freight-related contracts, as well as provides transportation-related services. The company was founded in 1883 and is headquartered in Saint Louis, Missouri.
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