Analyzing Alliance Resource Partners (ARLP) and Puda Coal (PUDA)

Analyzing Alliance Resource Partners (ARLP) and Puda Coal (PUDA)

Alliance Resource Partners (NASDAQ:ARLP) and Puda Coal (OTCMKTS:PUDA) are both oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, profitability, dividends and earnings.

Analyst Ratings

This is a summary of current recommendations and price targets for Alliance Resource Partners and Puda Coal, as provided by MarketBeat.com.

Alliance Resource Partners currently has a consensus target price of $23.50, suggesting a potential upside of 21.95%.

Dividends

Alliance Resource Partners pays an annual dividend of $2.10 per share and has a dividend yield of 10.9%. Puda Coal does not pay a dividend. Alliance Resource Partners pays out 73.2% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Alliance Resource Partners and Puda Coal’s gross revenue, earnings per share and valuation.

Alliance Resource Partners has higher revenue and earnings than Puda Coal.

Volatility and Risk

Alliance Resource Partners has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500. Comparatively, Puda Coal has a beta of -23.43, indicating that its stock price is 2,443% less volatile than the S&P 500.

Profitability

This table compares Alliance Resource Partners and Puda Coal’s net margins, return on equity and return on assets.

Insider & Institutional Ownership

29.0% of Alliance Resource Partners shares are held by institutional investors. 44.0% of Alliance Resource Partners shares are held by company insiders. Comparatively, 48.3% of Puda Coal shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Alliance Resource Partners beats Puda Coal on 8 of the 10 factors compared between the two stocks.

About Alliance Resource Partners

Alliance Resource Partners, L.P. produces and markets coal primarily to utilities and industrial users in the United States. The company operates through two segments, Illinois Basin and Appalachia. It produces a range of steam and metallurgical coal with sulfur and heat contents. The company operates eight underground mining complexes in Illinois, Indiana, Kentucky, Maryland, and West Virginia. It also leases land and operates a coal loading terminal on the Ohio River at Mt. Vernon, Indiana; and buys and resells coal, as well as owns equity interests in various oil and gas mineral interests and gas compression services located within producing basins in the continental United States. In addition, the company offers various industrial and mining technology products and services, such as miner and equipment tracking systems, and proximity detection systems. As of December 31, 2017, it had approximately 1.67 billion tons of proven and probable coal reserves in Illinois, Indiana, Kentucky, Maryland, Pennsylvania, and West Virginia. Alliance Resource Management GP, LLC serves as the general partner of the company. The company was founded in 1971 and is headquartered in Tulsa, Oklahoma. Alliance Resource Partners, L.P. is a subsidiary of Alliance Holdings GP, L.P.

About Puda Coal

Puda Coal, Inc., through its indirect equity ownership in Shanxi Puda Coal Group Co., Ltd., supplies metallurgical coking coal in the People's Republic of China. Its processed coking coal is used by coke and steel producers for the purpose of making the coke required for the steel manufacturing process. The company primarily markets its products in the Shanxi Province, Inner Mongolia Autonomous Region, Hebei Province, Beijing, and Tianjin. It also operates as an acquirer and consolidator of two coal mine consolidation projects, including the Pinglu project in Pinglu County; and the Jianhe project in Huozhou County, Shanxi Province. The company was founded in 2004 and is headquartered in Taiyuan, the People's Republic of China.

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