Financial Analysis: China Shenhua Energy (CSUAY) & Its Rivals

China Shenhua Energy (OTCMKTS:CSUAY) is one of 1,051 public companies in the “Oil, Gas & Consumable Fuels” industry, but how does it weigh in compared to its competitors? We will compare China Shenhua Energy to related companies based on the strength of its dividends, earnings, valuation, profitability, risk, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a summary of current ratings and target prices for China Shenhua Energy and its competitors, 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
China Shenhua Energy Competitors	5999	27057	40958	2431	2.52

As a group, “Oil, Gas & Consumable Fuels” companies have a potential upside of 26.85%. Given China Shenhua Energy’s competitors stronger consensus rating and higher possible upside, analysts clearly believe China Shenhua Energy has less favorable growth aspects than its competitors.

Valuation & Earnings

This table compares China Shenhua Energy and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
China Shenhua Energy	$41.03 billion	$7.54 billion	13.20
China Shenhua Energy Competitors	$10.92 billion	$5.51 billion	-0.99

China Shenhua Energy has higher revenue and earnings than its competitors. China Shenhua Energy is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares China Shenhua Energy and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
China Shenhua Energy	15.92%	11.40%	7.77%
China Shenhua Energy Competitors	-455.75%	19.43%	6.71%

Volatility & Risk

China Shenhua Energy has a beta of 0.27, indicating that its share price is 73% less volatile than the S&P 500. Comparatively, China Shenhua Energy’s competitors have a beta of -3.75, indicating that their average share price is 475% less volatile than the S&P 500.

Institutional & Insider Ownership

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

Dividends

China Shenhua Energy pays an annual dividend of $0.91 per share and has a dividend yield of 4.2%. China Shenhua Energy pays out 55.2% of its earnings in the form of a dividend. As a group, “Oil, Gas & Consumable Fuels” companies pay a dividend yield of 9.0% and pay out -134.4% of their earnings in the form of a dividend. China Shenhua Energy lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

China Shenhua Energy competitors beat China Shenhua Energy on 9 of the 15 factors compared.

China Shenhua Energy Company Profile

China Shenhua Energy Company Limited is an integrated energy company focused on coal and power. Its activities include coal mining, processing and sales, as well as electricity and heat generation. The company also produces coal-related chemical products. China Shenhua operates transportation infrastructure that supports its energy business, including railways, ports and shipping services. This integrated network moves coal from production areas to customers and power plants. The company’s operations and customer base are primarily in China.