Foresight Energy (NYSE:FELP) & Paringa Resources (NYSE:PNGZF) Critical Contrast

Foresight Energy (NYSE:FELP) and Paringa Resources (OTCMKTS:PNGZF) are both oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.

Profitability

This table compares Foresight Energy and Paringa Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Foresight Energy -4.65% -8.88% -2.18%
Paringa Resources N/A N/A N/A

Risk & Volatility

Foresight Energy has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500. Comparatively, Paringa Resources has a beta of 0.04, meaning that its share price is 96% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Foresight Energy and Paringa Resources, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Foresight Energy 0 1 0 0 2.00
Paringa Resources 0 0 0 0 N/A

Foresight Energy currently has a consensus target price of $5.00, indicating a potential upside of 777.19%. Given Foresight Energy’s higher probable upside, research analysts plainly believe Foresight Energy is more favorable than Paringa Resources.

Dividends

Foresight Energy pays an annual dividend of $0.24 per share and has a dividend yield of 42.1%. Paringa Resources does not pay a dividend. Foresight Energy pays out -75.0% of its earnings in the form of a dividend.

Insider and Institutional Ownership

0.9% of Foresight Energy shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Foresight Energy and Paringa Resources’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Foresight Energy $1.10 billion 0.08 -$61.61 million ($0.32) -1.78
Paringa Resources N/A N/A -$7.11 million N/A N/A

Paringa Resources has lower revenue, but higher earnings than Foresight Energy.

Summary

Foresight Energy beats Paringa Resources on 6 of the 10 factors compared between the two stocks.

About Foresight Energy

Foresight Energy LP engages in the development, mining, production, marketing, transportation, and sale of thermal coal primarily in the eastern United States and internationally. As of February 27, 2019, the company operated two longwall mining complexes with three longwall mining systems in Williamson and Sugar Camp; one continuous mining operation in Macoupin; and the Sitran river terminal on the Ohio River. It controls approximately 2 billion tons of coal reserves in the Illinois Basin. The company sells its coal to electric utility and industrial companies. Foresight Energy GP LLC acts as a general partner for Foresight Energy LP. The company was formerly known as Foresight Energy Partners LP and changed its name to Foresight Energy LP in April 2014. Foresight Energy LP was founded in 2006 and is headquartered in St. Louis, Missouri.

About Paringa Resources

Paringa Resources Limited, together with its subsidiaries, engages in the exploration and development of mineral resource properties in the United States. The company holds an interest in the Buck Creek Mine Complex located in the Illinois coal basin. As of June 30, 2018, it owned 40,751 gross acres of coal leases in Kentucky, the United States. Paringa Resources Limited was incorporated in 2012 and is headquartered in Rumsey, Kentucky.

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