Contrasting CONSOL Coal Resources (NYSE:CCR) and New Wei (WLTGQ)

CONSOL Coal Resources (NYSE:CCR) and New Wei (OTCMKTS:WLTGQ) are both small-cap oils/energy companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, earnings, dividends, institutional ownership, profitability and analyst recommendations.

Volatility & Risk

CONSOL Coal Resources has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500. Comparatively, New Wei has a beta of 58.54, meaning that its share price is 5,754% more volatile than the S&P 500.

Insider and Institutional Ownership

23.6% of CONSOL Coal Resources shares are held by institutional investors. Comparatively, 0.0% of New Wei shares are held by institutional investors. 1.3% of New Wei shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares CONSOL Coal Resources and New Wei’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CONSOL Coal Resources $322.78 million 1.46 $40.46 million $1.46 11.77
New Wei N/A N/A N/A N/A N/A

CONSOL Coal Resources has higher revenue and earnings than New Wei.

Analyst Ratings

This is a summary of current ratings and price targets for CONSOL Coal Resources and New Wei, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CONSOL Coal Resources 0 2 1 0 2.33
New Wei 0 0 0 0 N/A

CONSOL Coal Resources currently has a consensus target price of $20.50, suggesting a potential upside of 19.32%. Given CONSOL Coal Resources’ higher possible upside, research analysts clearly believe CONSOL Coal Resources is more favorable than New Wei.

Profitability

This table compares CONSOL Coal Resources and New Wei’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CONSOL Coal Resources 17.42% 28.19% 12.80%
New Wei N/A N/A N/A

Dividends

CONSOL Coal Resources pays an annual dividend of $2.05 per share and has a dividend yield of 11.9%. New Wei does not pay a dividend. CONSOL Coal Resources pays out 140.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

CONSOL Coal Resources beats New Wei on 8 of the 11 factors compared between the two stocks.

About CONSOL Coal Resources

CONSOL Coal Resources LP produces and sells high-Btu thermal coal in the Northern Appalachian Basin and the eastern United States. It owns a 25% undivided interest in the Pennsylvania mining complex, which consists of three underground mines and related infrastructure that produce high-Btu bituminous thermal coal located primarily in southwestern Pennsylvania. The company markets its thermal coal principally to electric utilities in the eastern United States. CONSOL Coal Resources GP LLC operates as a general partner of the company. The company was formerly known as CNX Coal Resources LP and changed its name to CONSOL Coal Resources LP in November 2017. CONSOL Coal Resources LP was founded in 2015 and is headquartered in Canonsburg, Pennsylvania. CONSOL Coal Resources LP is a subsidiary of CONSOL Energy Inc.

About New Wei

Walter Energy, Inc. is a producer and exporter of metallurgical coal for the global steel industry. It also produces thermal coal, anthracite, metallurgical coke and coal bed methane gas and other related products. The company operates through following reportable segments: U.S. Operations, Canadian and U.K. Operations, and Other. The U.S. Operations segment includes hard coking coal and thermal coal mines in both Alabama and West Virginia, a coke plant in Alabama, and coal bed methane extraction operations also located in Alabama. The Alabama operations consist of two underground hard coking coal mines in Southern Appalachia’s Blue Creek coal seam, one underground thermal coal mine, one surface hard coking coal mine and two surface hard coking and thermal coal mines. The West Virginia operations acquired four mines on two properties in West Virginia through the acquisition of Western Coal. The Mines on these properties produce both hard coking and thermal coal. The two properties are the Gauley Eagle and Maple properties and each has an underground mine and surface mine. The Canadian mining operations segment currently operate three surface metallurgical coal mines in Northeast British Columbia’s coalfields. Within British Columbia, the company holds the right to two large multi-deposit coal property groups: the Wolverine group, including the Perry Creek, EB and Hermann deposits; and the Brazion group, including the Brule Mine and the Willow Creek Mine and less explored portions of these properties and adjacent properties. The U.K. mining operation segment consists of an underground and surface mine located in South Wales. Walter Energy was founded by James Willis Walter in 1946 and is headquartered in Birmingham, AL.

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