By Ken Jordan
December 4, 2017 - NACCO Industries (NYSE: NC) and CONSOL Coal Resources (NYSE:CCR) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.
Institutional & Insider Ownership
48.6% of NACCO Industries shares are held by institutional investors. Comparatively, 25.7% of CONSOL Coal Resources shares are held by institutional investors. 30.6% of NACCO Industries shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This table compares NACCO Industries and CONSOL Coal Resources’ net margins, return on equity and return on assets.
NACCO Industries pays an annual dividend of $1.98 per share and has a dividend yield of 4.6%. CONSOL Coal Resources pays an annual dividend of $2.05 per share and has a dividend yield of 14.5%. NACCO Industries pays out 30.6% of its earnings in the form of a dividend. CONSOL Coal Resources pays out 148.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. NACCO Industries has raised its dividend for 3 consecutive years.
Valuation and Earnings
This table compares NACCO Industries and CONSOL Coal Resources’ gross revenue, earnings per share (EPS) and valuation.
NACCO Industries has higher revenue and earnings than CONSOL Coal Resources. NACCO Industries is trading at a lower price-to-earnings ratio than CONSOL Coal Resources, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and target prices for NACCO Industries and CONSOL Coal Resources, as reported by MarketBeat.
CONSOL Coal Resources has a consensus price target of $20.20, suggesting a potential upside of 43.26%. Given CONSOL Coal Resources’ higher possible upside, analysts clearly believe CONSOL Coal Resources is more favorable than NACCO Industries.
Risk and Volatility
NACCO Industries has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500. Comparatively, CONSOL Coal Resources has a beta of 1.41, indicating that its stock price is 41% more volatile than the S&P 500.
NACCO Industries Company Profile
NACCO Industries, Inc. is a holding company. The Company’s principal business includes mining. The Company operates through the NACoal segment. The Company’s subsidiary includes The North American Coal Corporation (NACoal). The Company’s NACoal segment mines coal for use in power generation and provides mining services for other natural resources companies. Coal is surface mined from NACoal’s mines in North Dakota, Texas, Mississippi, Louisiana and the Navajo Nation in New Mexico. NACoal’s operating coal mining subsidiaries include Bisti Fuels Company, LLC (Bisti), Caddo Creek Resources Company, LLC (Caddo Creek), Camino Real Fuels, LLC (Camino Real), The Coteau Properties Company (Coteau), Coyote Creek Mining Company, LLC (Coyote Creek), Demery Resources Company, LLC (Demery), The Falkirk Mining Company (Falkirk), Liberty Fuels Company, LLC (Liberty), Mississippi Lignite Mining Company (MLMC) and The Sabine Mining Company (Sabine).
CONSOL Coal Resources Company Profile
Consol Coal Resources LP, formerly CNX Coal Resources LP, is a producer of high-British thermal units (Btu) thermal coal. 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.