L&L Energy (OTCMKTS:LLEN) and BHP Billiton (NYSE:BBL) are both oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, earnings, dividends, profitability and risk.
BHP Billiton pays an annual dividend of $2.52 per share and has a dividend yield of 6.5%. L&L Energy does not pay a dividend. BHP Billiton pays out 75.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Insider & Institutional Ownership
0.1% of L&L Energy shares are owned by institutional investors. Comparatively, 4.3% of BHP Billiton shares are owned by institutional investors. 18.8% of L&L Energy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This is a breakdown of current recommendations and price targets for L&L Energy and BHP Billiton, as reported by MarketBeat.com.
BHP Billiton has a consensus target price of $38.00, suggesting a potential downside of 2.29%. Given BHP Billiton’s higher possible upside, analysts plainly believe BHP Billiton is more favorable than L&L Energy.
Volatility & Risk
L&L Energy has a beta of 2.93, meaning that its share price is 193% more volatile than the S&P 500. Comparatively, BHP Billiton has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500.
This table compares L&L Energy and BHP Billiton’s net margins, return on equity and return on assets.
Valuation and Earnings
This table compares L&L Energy and BHP Billiton’s top-line revenue, earnings per share (EPS) and valuation.
BHP Billiton has higher revenue and earnings than L&L Energy.
BHP Billiton beats L&L Energy on 5 of the 8 factors compared between the two stocks.
L&L Energy Company Profile
L&L Energy, Inc., through its subsidiaries, engages in production, processing, and sale of coal in the People's Republic of China. The company operates in three segments: Coal Mining, Coal Wholesaling, and Coking Coal. It has the right to extract coal from five mines, including the DaPuAn mine and the SuTsong mine in Yunnan Province; and the WeiShe mine, LaShu mine, and LuoZhou mine in Guizhou Province in China. The company also operates two coal washing plants and three coal wholesale and distribution network in the southwest region of China. It serves customers in steel and electrical/utility industries. L&L Energy, Inc. was founded in 1995 and is headquartered in Seattle, Washington.
BHP Billiton Company Profile
BHP Billiton Plc, together with its subsidiaries, discovers, acquires, develops, and markets natural resources worldwide. It operates through four segments: Petroleum, Copper, Iron Ore, and Coal. The company explores for copper, silver, lead, zinc, molybdenum, uranium, gold, and iron ores, as well as metallurgical coal, energy coal, and oil and gas. It also engages in the mining, smelting, and refining of nickel; the provision of freight, finance, and administrative services, as well as trading, marketing, and support services; and potash development activities. The company was formerly known as Billiton Plc. The company was incorporated in 1996 and is based in London, the United Kingdom. BHP Billiton Plc is a subsidiary of BHP Billiton Group.