Peabody Energy (NYSE:BTU) versus PrimeEnergy (NASDAQ:PNRG) Head-To-Head Survey

Peabody Energy (NYSE:BTU) and PrimeEnergy (NASDAQ:PNRG) are both energy companies, but which is the superior business? We will compare the two companies based on the strength of their risk, institutional ownership, earnings, profitability, dividends, valuation and analyst recommendations.

Earnings & Valuation

This table compares Peabody Energy and PrimeEnergy”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Peabody Energy	$3.86 billion	0.78	-$52.90 million	($1.50)	-16.55
PrimeEnergy	$189.05 million	1.75	$26.31 million	$10.38	20.19

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

Risk & Volatility

Peabody Energy has a beta of 0.33, suggesting that its share price is 67% less volatile than the S&P 500. Comparatively, PrimeEnergy has a beta of -0.18, suggesting that its share price is 118% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Peabody Energy and PrimeEnergy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Peabody Energy	1	3	2	0	2.17
PrimeEnergy	0	2	0	0	2.00

Peabody Energy presently has a consensus target price of $33.88, suggesting a potential upside of 36.47%. Given Peabody Energy’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Peabody Energy is more favorable than PrimeEnergy.

Insider and Institutional Ownership

87.4% of Peabody Energy shares are owned by institutional investors. 0.5% of Peabody Energy shares are owned by insiders. Comparatively, 65.3% of PrimeEnergy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Peabody Energy and PrimeEnergy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Peabody Energy	-4.56%	-5.22%	-3.22%
PrimeEnergy	13.87%	11.47%	7.67%

Summary

PrimeEnergy beats Peabody Energy on 8 of the 14 factors compared between the two stocks.

About Peabody Energy

Peabody Energy Corporation engages in coal mining business in the United States, Japan, Taiwan, Australia, India, Brazil, Belgium, Chile, France, Indonesia, China, Vietnam, South Korea, Germany, and internationally. The company operates through Seaborne Thermal, Seaborne Metallurgical, Powder River Basin, Other U.S. Thermal, and Corporate and Other segments. It is involved in the mining, preparation, and sale of thermal coal primarily to electric utilities; mining bituminous and sub-bituminous coal deposits; low sulfur and high British thermal unit thermal coal; and mining metallurgical coal, such as hard coking coal, semi-hard coking coal, semi-soft coking coal, and pulverized coal injection coal. The company supplies coal primarily to electricity generators, industrial facilities, and steel manufacturers. It also engages in marketing and brokering of coal from other coal producers; trading of coal and freight-related contracts, as well as provides transportation-related services. The company was founded in 1883 and is headquartered in Saint Louis, Missouri.

About PrimeEnergy

PrimeEnergy Resources Corporation, through its subsidiaries, engages in acquisition, development, and production of oil and natural gas properties in the United States. The company owns leasehold, mineral, and royalty interests in producing and non-producing oil and gas properties; and operates approximately 534 active wells and owns non-operating interests and royalties in 952 additional wells. It also acquires producing oil and gas properties through joint ventures with industry partners; and provides contract services to third parties, including well-servicing support, site-preparation, and construction services for oil and gas drilling and reworking operations. The company was formerly known as PrimeEnergy Corporation and changed its name to PrimeEnergy Resources Corporation in December 2018. PrimeEnergy Resources Corporation was incorporated in 1973 and is headquartered in Houston, Texas.