Natural Resource Partners (NYSE: NRP) and China Shenhua Energy (OTCMKTS:CSUAY) are both oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, earnings, profitability, institutional ownership, valuation and risk.
Valuation and Earnings
This table compares Natural Resource Partners and China Shenhua Energy’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Natural Resource Partners||$378.02 million||0.93||$88.66 million||$3.48||8.28|
|China Shenhua Energy||$27.57 billion||1.90||$3.75 billion||$1.32||7.97|
Natural Resource Partners pays an annual dividend of $1.80 per share and has a dividend yield of 6.3%. China Shenhua Energy pays an annual dividend of $0.19 per share and has a dividend yield of 1.8%. Natural Resource Partners pays out 51.7% of its earnings in the form of a dividend. China Shenhua Energy pays out 14.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Natural Resource Partners has raised its dividend for 2 consecutive years. Natural Resource Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a summary of recent ratings and recommmendations for Natural Resource Partners and China Shenhua Energy, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Natural Resource Partners||0||1||0||0||2.00|
|China Shenhua Energy||0||0||0||0||N/A|
Natural Resource Partners presently has a consensus target price of $36.00, suggesting a potential upside of 25.00%. Given Natural Resource Partners’ higher probable upside, equities analysts clearly believe Natural Resource Partners is more favorable than China Shenhua Energy.
Risk & Volatility
Natural Resource Partners has a beta of 0.66, suggesting that its stock price is 34% less volatile than the S&P 500. Comparatively, China Shenhua Energy has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500.
This table compares Natural Resource Partners and China Shenhua Energy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Natural Resource Partners||32.67%||39.34%||5.84%|
|China Shenhua Energy||18.63%||11.76%||7.59%|
Insider and Institutional Ownership
28.2% of Natural Resource Partners shares are held by institutional investors. Comparatively, 0.0% of China Shenhua Energy shares are held by institutional investors. 39.0% of Natural Resource Partners shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Natural Resource Partners beats China Shenhua Energy on 9 of the 15 factors compared between the two stocks.
Natural Resource Partners Company Profile
Natural Resource Partners L.P. owns, operates, manages and leases a portfolio of mineral properties in the United States, including interests in coal, trona and soda ash, construction aggregates and other natural resources. Coal Royalty and Other segment consists primarily of coal royalty and coal related transportation and processing assets. As of December 31, 2016, Soda Ash segment included the Company’s 49% non-controlling equity interest in Ciner Wyoming, a trona ore mining operation and soda ash refinery in the Green River Basin, Wyoming. VantaCore’s operating businesses include Laurel Aggregates, located in Lake Lynn, Pennsylvania; Winn Materials/McIntosh Construction, located in Clarksville, Tennessee; Grand Rivers, located in Grand Rivers, Kentucky, and Southern Aggregates, located near Baton Rouge, Louisiana.
China Shenhua Energy Company Profile
China Shenhua Energy Company Limited is a China-based company, principally engaged in port business. The Company is also engaged in the manufacture and sales of coal and electricity, railway and ship transportation, and coal to olefin (CTO) business. The Company’s main coal products are thermal coal and coking coal. The Company’s products are applied in electricity, metallurgy, chemical, building materials and other sectors. The Company distributes its products within domestic market and to overseas markets.
Receive News & Ratings for Natural Resource Partners Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Natural Resource Partners and related companies with MarketBeat.com's FREE daily email newsletter.