By Jesse Mackey

April 15, 2018 - Contura Energy (OTCMKTS: CNTE) and SunCoke Energy Partners (NYSE:SXCP) are both small-cap oils/energy companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, earnings, dividends, institutional ownership, valuation, profitability and analyst recommendations.

Dividends

SunCoke Energy Partners pays an annual dividend of $2.38 per share and has a dividend yield of 13.5%. Contura Energy does not pay a dividend. SunCoke Energy Partners pays out 144.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. SunCoke Energy Partners has increased its dividend for 2 consecutive years.

Profitability

This table compares Contura Energy and SunCoke Energy Partners’ net margins, return on equity and return on assets.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Contura Energy and SunCoke Energy Partners, as provided by MarketBeat.com.

Contura Energy currently has a consensus price target of $80.00, indicating a potential upside of 23.08%. SunCoke Energy Partners has a consensus price target of $21.00, indicating a potential upside of 18.98%. Given Contura Energy’s higher probable upside, equities research analysts plainly believe Contura Energy is more favorable than SunCoke Energy Partners.

Institutional and Insider Ownership

0.9% of Contura Energy shares are owned by institutional investors. Comparatively, 11.5% of SunCoke Energy Partners shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Contura Energy and SunCoke Energy Partners’ revenue, earnings per share (EPS) and valuation.

Contura Energy has higher revenue and earnings than SunCoke Energy Partners. Contura Energy is trading at a lower price-to-earnings ratio than SunCoke Energy Partners, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Contura Energy has a beta of 1.28, suggesting that its stock price is 28% more volatile than the S&P 500. Comparatively, SunCoke Energy Partners has a beta of 1.38, suggesting that its stock price is 38% more volatile than the S&P 500.

Summary

Contura Energy beats SunCoke Energy Partners on 8 of the 15 factors compared between the two stocks.

Contura Energy

Contura Energy, Inc. extracts, processes, and markets steam and metallurgical coal to electric utilities, steel and coke producers, and industrial customers the United States. The company operates in four segments: Central Appalachia Operations, Northern Appalachia Operations, Powder River Basin Operations, and Trading and Logistics. It operates ground and surface coal mining complexes in Pennsylvania, Virginia, West Virginia, and Wyoming. The company provides coal trading and terminal services. Contura Energy, Inc. was founded in 2016 and is headquartered in Bristol, Tennessee.

SunCoke Energy Partners

SunCoke Energy Partners, L.P. is engaged in the production of coke used in the blast furnace production of steel. As of December 31, 2016, the Company owned a 98% interest in Haverhill Coke Company LLC (Haverhill), Middletown Coke Company, LLC (Middletown), and Gateway Energy and Coke Company, LLC (Granite City). The Company’s segments include Domestic Coke, which consists of the Haverhill, Middletown and Granite City cokemaking and heat recovery operations located in Franklin Furnace, Ohio; Middletown, Ohio, and Granite City, Illinois, respectively, and Coal Logistics, which consists of the Company’s Convent Marine Terminal, Kanawha River Terminals, LLC and SunCoke Lake Terminal, LLC (Lake Terminal) coal handling and/or mixing service operations in Convent, Louisiana; Ceredo and Belle, West Virginia, and East Chicago, Indiana, respectively. It also provides coal handling and/or mixing services at its Coal Logistics terminals to steel, coke, electric utility and coal mining customers. 

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