Warrior Met Coal (NYSE:HCC) and CONSOL Energy (NYSE:CEIX) are both small-cap oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, risk, profitability and dividends.
Earnings and Valuation
This table compares Warrior Met Coal and CONSOL Energy's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Warrior Met Coal | $1.27 billion | 1.02 | $301.70 million | $5.52 | 4.56 |
| CONSOL Energy | $1.43 billion | 0.28 | $76 million | $3.52 | 3.33 |
Warrior Met Coal has higher earnings, but lower revenue than CONSOL Energy. CONSOL Energy is trading at a lower price-to-earnings ratio than Warrior Met Coal, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Warrior Met Coal has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500. Comparatively, CONSOL Energy has a beta of 2.94, suggesting that its stock price is 194% more volatile than the S&P 500.
Insider and Institutional Ownership
98.2% of Warrior Met Coal shares are held by institutional investors. Comparatively, 71.9% of CONSOL Energy shares are held by institutional investors. 0.5% of Warrior Met Coal shares are held by company insiders. Comparatively, 1.1% of CONSOL Energy shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Warrior Met Coal and CONSOL Energy's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Warrior Met Coal | 2.41% | 1.04% | 0.58% |
| CONSOL Energy | -0.86% | -1.58% | -0.34% |
Analyst Recommendations
This is a summary of current recommendations and price targets for Warrior Met Coal and CONSOL Energy, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Warrior Met Coal | 0 | 5 | 3 | 0 | 2.38 |
| CONSOL Energy | 0 | 0 | 2 | 0 | 3.00 |
Warrior Met Coal presently has a consensus target price of $21.50, suggesting a potential downside of 14.65%. CONSOL Energy has a consensus target price of $9.00, suggesting a potential downside of 23.53%. Given Warrior Met Coal's higher possible upside, analysts clearly believe Warrior Met Coal is more favorable than CONSOL Energy.
Summary
Warrior Met Coal beats CONSOL Energy on 10 of the 14 factors compared between the two stocks.
