Critical Analysis: CNX Resources (CNX) and The Competition

CNX Resources (NYSE:CNX) is one of 1,051 publicly-traded companies in the “Oil, Gas & Consumable Fuels” industry, but how does it contrast to its rivals? We will compare CNX Resources to related businesses based on the strength of its risk, dividends, earnings, valuation, institutional ownership, analyst recommendations and profitability.

Insider and Institutional Ownership

95.2% of CNX Resources shares are held by institutional investors. Comparatively, 30.8% of shares of all “Oil, Gas & Consumable Fuels” companies are held by institutional investors. 5.0% of CNX Resources shares are held by company insiders. Comparatively, 15.3% of shares of all “Oil, Gas & Consumable Fuels” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk and Volatility

CNX Resources has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500. Comparatively, CNX Resources’ rivals have a beta of -3.74, meaning that their average stock price is 474% less volatile than the S&P 500.

Profitability

This table compares CNX Resources and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CNX Resources	35.16%	10.13%	5.17%
CNX Resources Competitors	-455.75%	19.43%	6.71%

Valuation and Earnings

This table compares CNX Resources and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
CNX Resources	$2.24 billion	$633.16 million	6.23
CNX Resources Competitors	$10.92 billion	$5.51 billion	-1.07

CNX Resources’ rivals have higher revenue and earnings than CNX Resources. CNX Resources is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for CNX Resources and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CNX Resources	3	8	1	0	1.83
CNX Resources Competitors	6007	27075	40971	2431	2.52

CNX Resources currently has a consensus target price of $35.00, indicating a potential downside of 4.80%. As a group, “Oil, Gas & Consumable Fuels” companies have a potential upside of 26.55%. Given CNX Resources’ rivals stronger consensus rating and higher probable upside, analysts clearly believe CNX Resources has less favorable growth aspects than its rivals.

Summary

CNX Resources rivals beat CNX Resources on 9 of the 13 factors compared.

CNX Resources Company Profile

CNX Resources Corporation is an independent natural gas company headquartered in Canonsburg, Pennsylvania. It explores for, develops and produces natural gas, primarily from shale formations in the Appalachian Basin, including the Marcellus and Utica. The company’s operations are concentrated in Pennsylvania, West Virginia and Ohio. Its natural gas is supplied to markets that serve residential, commercial and industrial customers, as well as electric power generation. CNX traces its roots to the coal industry and the Consolidation Coal Company, founded in the 19th century.