Foresight Energy (NYSE: FELP) and Alpha Appalachia Holdings (NYSE:MEE) are both oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, valuation, risk, institutional ownership, earnings, analyst recommendations and dividends.

Profitability

This table compares Foresight Energy and Alpha Appalachia Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Foresight Energy -19.93% -9.94% -2.43%
Alpha Appalachia Holdings N/A N/A N/A

Valuation & Earnings

This table compares Foresight Energy and Alpha Appalachia Holdings’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Foresight Energy $875.83 million 0.37 -$178.78 million ($1.69) -2.44
Alpha Appalachia Holdings N/A N/A N/A ($2.05) N/A

Alpha Appalachia Holdings has higher revenue, but lower earnings than Foresight Energy. Foresight Energy is trading at a lower price-to-earnings ratio than Alpha Appalachia Holdings, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

11.7% of Foresight Energy shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Foresight Energy pays an annual dividend of $0.24 per share and has a dividend yield of 5.8%. Alpha Appalachia Holdings does not pay a dividend. Foresight Energy pays out -14.2% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Foresight Energy and Alpha Appalachia Holdings, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Foresight Energy 0 3 0 0 2.00
Alpha Appalachia Holdings 0 0 0 0 N/A

Foresight Energy presently has a consensus target price of $5.25, suggesting a potential upside of 27.43%.

Summary

Foresight Energy beats Alpha Appalachia Holdings on 5 of the 8 factors compared between the two stocks.

Foresight Energy Company Profile

Foresight Energy LP is engaged in the mining and marketing of coal from reserves and operations located in the Illinois Basin. As of December 31, 2016, the Company controlled 2.1 billion tons of coal in the state of Illinois. Its reserves consist principally of three contiguous blocks of uniform, thick, high heat content (high Btu) thermal coal, which are used for longwall operations. The Company operates four underground mining complexes in the Illinois Basin, including Williamson, Sugar Camp, Hillsboro and Macoupin. Its mining complexes operate in the Illinois Basin with approximately two located in Southern Illinois and over two located in Central Illinois. Williamson, Sugar Camp and Hillsboro are longwall operations, and Macoupin is a continuous miner operation. The Company markets and sells its coal to electric utility and industrial companies in the eastern half of the United States as well as internationally (primarily into Europe).

Alpha Appalachia Holdings Company Profile

Massey Energy Company (Massey) is a coal producer in the United States. The Company produces, processes and sells bituminous coal of various steam and metallurgical grades, primarily of a low sulfur content, through its 25 processing and shipping centers (Resource Groups), many of which receive coal from multiple mines. At January 31, 2011, the Company operated 84 mines, including 66 underground mines (one of which employs both room and pillar and longwall mining) and 18 surface mines (with 12 highwall miners in operation) in West Virginia, Kentucky and Virginia. On April 19, 2010, the Company completed the acquisition of Cumberland Resources Corporation and certain affiliated entities (Cumberland). The Cumberland operations include primarily underground coal mines in Southwestern Virginia and Eastern Kentucky. The Company owns a majority interest in Coalsolv, LLC (Coalsolv).

Receive News & Stock Ratings for Foresight Energy LP Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Foresight Energy LP and related stocks with our FREE daily email newsletter.