Natural Resource Partners (NRP) & CNX Coal Resources (CNXC) Critical Survey
CNX Coal Resources (NYSE: CNXC) and Natural Resource Partners (NYSE:NRP) are both small-cap oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, earnings, profitabiliy, institutional ownership, valuation and risk.
Risk & Volatility
CNX Coal Resources has a beta of 1.48, suggesting that its stock price is 48% more volatile than the S&P 500. Comparatively, Natural Resource Partners has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500.
This is a summary of recent ratings and recommmendations for CNX Coal Resources and Natural Resource Partners, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|CNX Coal Resources||0||2||5||0||2.71|
|Natural Resource Partners||0||2||0||0||2.00|
CNX Coal Resources presently has a consensus target price of $20.00, suggesting a potential upside of 23.08%. Natural Resource Partners has a consensus target price of $33.00, suggesting a potential upside of 14.38%. Given CNX Coal Resources’ stronger consensus rating and higher probable upside, equities analysts clearly believe CNX Coal Resources is more favorable than Natural Resource Partners.
Insider and Institutional Ownership
60.8% of CNX Coal Resources shares are held by institutional investors. Comparatively, 21.7% of Natural Resource Partners shares are held by institutional investors. 39.0% of Natural Resource Partners shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This table compares CNX Coal Resources and Natural Resource Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|CNX Coal Resources||10.02%||18.32%||6.07%|
|Natural Resource Partners||22.86%||62.10%||6.01%|
Valuation and Earnings
This table compares CNX Coal Resources and Natural Resource Partners’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|CNX Coal Resources||$301.84 million||1.26||$87.51 million||$1.23||13.21|
|Natural Resource Partners||$345.18 million||1.02||$189.12 million||$5.91||4.88|
Natural Resource Partners has higher revenue and earnings than CNX Coal Resources. Natural Resource Partners is trading at a lower price-to-earnings ratio than CNX Coal Resources, indicating that it is currently the more affordable of the two stocks.
CNX Coal Resources pays an annual dividend of $2.05 per share and has a dividend yield of 12.6%. Natural Resource Partners pays an annual dividend of $1.80 per share and has a dividend yield of 6.2%. CNX Coal Resources pays out 166.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Natural Resource Partners pays out 30.5% of its earnings in the form of a dividend.
CNX Coal Resources beats Natural Resource Partners on 9 of the 16 factors compared between the two stocks.
CNX Coal Resources Company Profile
CNX Coal Resources LP is a producer of high-British thermal units (Btu) thermal coal in the Northern Appalachian Basin and the eastern United States. It is engaged in the management and development of coal operations of CONSOL Energy Inc. (CONSOL Energy) in Pennsylvania. It holds interest in, and operational control over, CONSOL Energy’s Pennsylvania Mining Complex, which consists of three underground mines and related infrastructure that produce high-Btu bituminous thermal coal that is sold primarily to electric utilities in the eastern United States. The Pennsylvania Mining Complex includes the Bailey Mine, the Enlow Fork Mine and the Harvey Mine. It mines its reserves from the Pittsburgh Number eight Coal Seam, which is a contiguous formation of uniform, Btu thermal coal. Its Bailey Mine is located in Enon, Pennsylvania. Its Enlow Fork Mine is located directly north of the Bailey Mine. Its Harvey Mine is located directly east of the Bailey and Enlow Fork Mines.
Natural Resource Partners Company Profile
Natural Resource Partners L.P. owns, operates, manages and leases a portfolio of mineral properties in the United States, including interests in coal, trona and soda ash, construction aggregates and other natural resources. Coal Royalty and Other segment consists primarily of coal royalty and coal related transportation and processing assets. As of December 31, 2016, Soda Ash segment included the Company’s 49% non-controlling equity interest in Ciner Wyoming, a trona ore mining operation and soda ash refinery in the Green River Basin, Wyoming. VantaCore’s operating businesses include Laurel Aggregates, located in Lake Lynn, Pennsylvania; Winn Materials/McIntosh Construction, located in Clarksville, Tennessee; Grand Rivers, located in Grand Rivers, Kentucky, and Southern Aggregates, located near Baton Rouge, Louisiana.
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