Head to Head Contrast: Arch Coal (ARCH) vs. Peabody Energy Corporation (BTU)
Arch Coal (NYSE: ARCH) and Peabody Energy Corporation (NYSE:BTU) are both basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, dividends, analyst recommendations, risk and valuation.
Arch Coal pays an annual dividend of $1.40 per share and has a dividend yield of 1.8%. Peabody Energy Corporation does not pay a dividend.
Valuation & Earnings
This table compares Arch Coal and Peabody Energy Corporation’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Arch Coal||$1.97 billion||0.88||$1.28 billion||N/A||N/A|
|Peabody Energy Corporation||$4.72 billion||0.70||-$729.30 million||N/A||N/A|
Arch Coal has higher revenue, but lower earnings than Peabody Energy Corporation.
This table compares Arch Coal and Peabody Energy Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Peabody Energy Corporation||4.60%||19.92%||2.74%|
This is a summary of recent ratings and target prices for Arch Coal and Peabody Energy Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Peabody Energy Corporation||0||2||7||0||2.78|
Arch Coal currently has a consensus price target of $93.00, indicating a potential upside of 18.04%. Peabody Energy Corporation has a consensus price target of $35.63, indicating a potential upside of 13.13%. Given Arch Coal’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Arch Coal is more favorable than Peabody Energy Corporation.
Institutional & Insider Ownership
95.2% of Peabody Energy Corporation shares are owned by institutional investors. 1.3% of Arch Coal shares are owned by insiders. Comparatively, 1.3% of Peabody Energy Corporation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Arch Coal beats Peabody Energy Corporation on 7 of the 12 factors compared between the two stocks.
Arch Coal Company Profile
Arch Coal, Inc. is a coal producer. The Company is engaged in the production of thermal and metallurgical coal from surface and underground mines located throughout the United States, for sale to utility, industrial and steel producers both in the United States and around the world. The Company operates mining complexes in West Virginia, Kentucky, Maryland, Virginia, Illinois, Wyoming and Colorado. The Company’s segments include the Powder River Basin and Appalachia. The Powder River Basin segment includes operations in Wyoming. The Appalachia segment includes operations in West Virginia, Kentucky, Maryland and Virginia. The Company also sells coal from operations in Colorado and Illinois. Powder River Basin consists of Black Thunder and Coal Creek mines. The Company’s mines in Appalachia include Coal-Mac, Lone Mountain, Mountain Laurel, Beckley, Vindex, Sentinel and Leer. The Company operates, or contracts out the operation of approximately 10 active mines in the United States.
Peabody Energy Corporation Company Profile
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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