China Shenhua Energy (OTCMKTS:CSUAY – Get Free Report) and SunCoke Energy (NYSE:SXC – Get Free Report) are both energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.
Profitability
This table compares China Shenhua Energy and SunCoke Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| China Shenhua Energy | 18.12% | 11.45% | 8.75% |
| SunCoke Energy | 4.95% | 13.40% | 5.61% |
Analyst Recommendations
This is a breakdown of recent recommendations for China Shenhua Energy and SunCoke Energy, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| China Shenhua Energy | 0 | 1 | 0 | 0 | 2.00 |
| SunCoke Energy | 0 | 0 | 1 | 0 | 3.00 |
Institutional & Insider Ownership
90.5% of SunCoke Energy shares are held by institutional investors. 1.5% of SunCoke Energy shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares China Shenhua Energy and SunCoke Energy”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| China Shenhua Energy | $47.07 billion | N/A | $8.68 billion | $1.62 | 9.68 |
| SunCoke Energy | $1.94 billion | 0.38 | $95.90 million | $1.09 | 8.00 |
China Shenhua Energy has higher revenue and earnings than SunCoke Energy. SunCoke Energy is trading at a lower price-to-earnings ratio than China Shenhua Energy, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
China Shenhua Energy has a beta of 0.23, indicating that its share price is 77% less volatile than the S&P 500. Comparatively, SunCoke Energy has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500.
Dividends
China Shenhua Energy pays an annual dividend of $1.06 per share and has a dividend yield of 6.8%. SunCoke Energy pays an annual dividend of $0.48 per share and has a dividend yield of 5.5%. China Shenhua Energy pays out 65.4% of its earnings in the form of a dividend. SunCoke Energy pays out 44.0% 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. SunCoke Energy has increased its dividend for 4 consecutive years.
About China Shenhua Energy
China Shenhua Energy Company Limited, together with its subsidiaries, engages in the production and sale of coal and power; railway, port, and shipping transportation; and coal-to-olefins businesses in the People's Republic of China and internationally. It operates through six segments: Coal, Power Generation, Railway, Port, Shipping, and Coal Chemical. The Coal segment produces coal from surface and underground mines; and sells coal to power plants and metallurgical and coal chemical producers. The Power segment generates electric power through thermal, wind, water, and gas; and sells electric power to power grid companies. The Railway segment provides railway transportation services. The Port segment offers loading, transportation, and storage services. The Shipping segment provides shipment transportation services. The Coal Chemical segment produces and sells methanol; and polyethylene and polypropylene, as well as other by-products. The company was incorporated in 2004 and is based in Beijing, the People's Republic of China. China Shenhua Energy Company Limited operates as a subsidiary of China Energy Investment Corporation Limited.
About SunCoke Energy
SunCoke Energy, Inc. operates as an independent producer of coke in the Americas and Brazil. The company operates through three segments: Domestic Coke, Brazil Coke, and Logistics. It offers metallurgical and thermal coal. The company also provides handling and/or mixing services to steel, coke, electric utility, coal producing, and other manufacturing based customers. In addition, it owns and operates cokemaking facilities in the United States and Brazil. The company was founded in 1960 and is headquartered in Lisle, Illinois.
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