Contrasting SunocoCorp (NYSE:SUNC) and Peabody Energy (NYSE:BTU)

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

Profitability

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

Net Margins Return on Equity Return on Assets
SunocoCorp N/A N/A N/A
Peabody Energy -4.56% -5.22% -3.22%

Analyst Recommendations

This is a breakdown of recent recommendations for SunocoCorp and Peabody Energy, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SunocoCorp 1 1 3 1 2.67
Peabody Energy 1 3 2 0 2.17

SunocoCorp currently has a consensus target price of $81.00, indicating a potential upside of 7.40%. Peabody Energy has a consensus target price of $33.88, indicating a potential upside of 34.46%. Given Peabody Energy’s higher probable upside, analysts clearly believe Peabody Energy is more favorable than SunocoCorp.

Dividends

SunocoCorp pays an annual dividend of $4.01 per share and has a dividend yield of 5.3%. Peabody Energy pays an annual dividend of $0.30 per share and has a dividend yield of 1.2%. SunocoCorp pays out 138.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Peabody Energy pays out -20.0% of its earnings in the form of a dividend. Peabody Energy has raised its dividend for 1 consecutive years.

Earnings and Valuation

This table compares SunocoCorp and Peabody Energy”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SunocoCorp $25.20 billion 0.15 -$5.00 million $2.89 26.10
Peabody Energy $3.86 billion 0.79 -$52.90 million ($1.50) -16.80

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

Institutional and Insider Ownership

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

Summary

SunocoCorp beats Peabody Energy on 10 of the 16 factors compared between the two stocks.

About SunocoCorp

(Get Free Report)

Sunoco LP is an energy infrastructure and fuel distribution master limited partnership. Sunoco LP is based in DALLAS.

About Peabody Energy

(Get Free Report)

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.

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