Alliance Holdings GP (AHGP) & Peabody Energy (BTU) Head to Head Analysis
Alliance Holdings GP (NASDAQ: AHGP) and Peabody Energy (NYSE:BTU) are both oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, valuation, risk, earnings, dividends, analyst recommendations and institutional ownership.
This table compares Alliance Holdings GP and Peabody Energy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Alliance Holdings GP||10.36%||16.54%||8.67%|
This table compares Alliance Holdings GP and Peabody Energy’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Alliance Holdings GP||$1.80 billion||0.85||$185.98 million||$3.10||8.20|
|Peabody Energy||$5.58 billion||0.89||$461.60 million||$10.20||3.76|
Peabody Energy has higher revenue and earnings than Alliance Holdings GP. Peabody Energy is trading at a lower price-to-earnings ratio than Alliance Holdings GP, indicating that it is currently the more affordable of the two stocks.
Alliance Holdings GP pays an annual dividend of $2.97 per share and has a dividend yield of 11.7%. Peabody Energy pays an annual dividend of $0.46 per share and has a dividend yield of 1.2%. Alliance Holdings GP pays out 95.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Peabody Energy pays out 4.5% of its earnings in the form of a dividend.
This is a summary of current ratings and target prices for Alliance Holdings GP and Peabody Energy, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Alliance Holdings GP||0||1||0||0||2.00|
Alliance Holdings GP currently has a consensus target price of $32.00, indicating a potential upside of 25.93%. Peabody Energy has a consensus target price of $42.22, indicating a potential upside of 10.13%. Given Alliance Holdings GP’s higher probable upside, equities research analysts clearly believe Alliance Holdings GP is more favorable than Peabody Energy.
Institutional and Insider Ownership
21.4% of Alliance Holdings GP shares are held by institutional investors. Comparatively, 79.3% of Peabody Energy shares are held by institutional investors. 1.3% of Peabody Energy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Peabody Energy beats Alliance Holdings GP on 11 of the 15 factors compared between the two stocks.
About Alliance Holdings GP
Alliance Holdings GP, L.P. (AHGP) is a limited partnership company. The Company owns directly and indirectly the members’ interest in Alliance Resource Management GP, LLC (MGP), the managing general partner of Alliance Resource Partners, L.P. (ARLP). The Company’s segments include Illinois Basin, Appalachia, and Other and Corporate. The Illinois Basin segment consists of mining complexes, including Webster County Coal’s Dotiki mining complex; Gibson County Coal’s mining complex, which includes the Gibson North mine and Gibson South mine; Warrior’s mining complex; River View’s mining complex and the Hamilton mining complex. The Appalachia segment consists of various operating segments, including the Mettiki mining complex, the Tunnel Ridge mining complex and the MC Mining mining complex. The Mettiki mining complex includes Mettiki Coal (WV)’s Mountain View mine and Mettiki Coal’s preparation plant. Other and Corporate segment includes marketing and administrative activities.
About Peabody Energy
Peabody Energy Corporation is a coal company. The Company’s segments include Powder River Basin Mining, Midwestern U.S. Mining, Western U.S. Mining, Australian Metallurgical Mining, Australian Thermal Mining, Trading and Brokerage, and Corporate and Other. Its Powder River Basin Mining operations consist of its mines in Wyoming. Midwestern U.S. Mining operations reflect the Company’s Illinois and Indiana mining operations. Western U.S. Mining operations reflect the aggregation of the New Mexico, Arizona and Colorado mining operations. Australian Metallurgical Mining operations consist of mines in Queensland and New South Wales, Australia. Australian Thermal Mining operations consist of mines in New South Wales, Australia. Its Trading and Brokerage segment engages in the direct and brokered trading of coal and freight-related contracts through the trading and business offices. Its Corporate and Other includes selling and administrative expenses, and corporate hedging activities.
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