SunCoke Energy Partners, L.P. (NYSE: SXCP) and ArcelorMittal (NYSE:MT) are both oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.

Institutional & Insider Ownership

27.6% of SunCoke Energy Partners, L.P. shares are held by institutional investors. Comparatively, 9.3% of ArcelorMittal shares are held by institutional investors. 0.1% of ArcelorMittal shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

SunCoke Energy Partners, L.P. pays an annual dividend of $2.38 per share and has a dividend yield of 14.1%. ArcelorMittal does not pay a dividend. SunCoke Energy Partners, L.P. pays out -127.3% of its earnings in the form of a dividend.

Risk and Volatility

SunCoke Energy Partners, L.P. has a beta of 1.31, indicating that its stock price is 31% more volatile than the S&P 500. Comparatively, ArcelorMittal has a beta of 2.09, indicating that its stock price is 109% more volatile than the S&P 500.

Valuation and Earnings

This table compares SunCoke Energy Partners, L.P. and ArcelorMittal’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
SunCoke Energy Partners, L.P. $800.00 million 0.97 $218.50 million ($1.87) -9.01
ArcelorMittal $61.98 billion 0.43 $7.47 billion $3.33 7.80

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

Profitability

This table compares SunCoke Energy Partners, L.P. and ArcelorMittal’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SunCoke Energy Partners, L.P. -9.52% 14.02% 5.44%
ArcelorMittal 5.50% 10.52% 4.58%

Analyst Ratings

This is a summary of recent recommendations for SunCoke Energy Partners, L.P. and ArcelorMittal, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SunCoke Energy Partners, L.P. 0 0 1 0 3.00
ArcelorMittal 1 1 11 0 2.77

SunCoke Energy Partners, L.P. currently has a consensus price target of $19.00, suggesting a potential upside of 12.76%. ArcelorMittal has a consensus price target of $31.90, suggesting a potential upside of 22.85%. Given ArcelorMittal’s higher probable upside, analysts clearly believe ArcelorMittal is more favorable than SunCoke Energy Partners, L.P..

SunCoke Energy Partners, L.P. Company Profile

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.

ArcelorMittal Company Profile

ArcelorMittal S.A. (ArcelorMittal) is a holding company. The Company, together with its subsidiaries, owns and operates steel manufacturing and mining facilities in Europe, North and South America, Asia and Africa. ArcelorMittal operates through five segments, which include NAFTA; Europe; Brazil; Africa and Commonwealth of Independent States (ACIS), and Mining. The NAFTA segment produces flat, long and tubular products. The Brazil segment includes the flat operations of Brazil, and the long and tubular operations of Brazil and neighboring countries. The Europe segment is the flat steel producer in Europe. The ACIS segment produces a combination of flat, long products and tubular products. The Mining segment comprises all mines owned by ArcelorMittal in the Americas, Asia, Europe and Africa. It produces a range of finished and semi-finished steel products (semis).

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