Head-To-Head Review: China Coal Energy (OTCMKTS:CCOZY) vs. NACCO Industries (NYSE:NC)

NACCO Industries (NYSE:NC) and China Coal Energy (OTCMKTS:CCOZY) are both energy companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.

Volatility & Risk

NACCO Industries has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500. Comparatively, China Coal Energy has a beta of -0.21, indicating that its share price is 121% less volatile than the S&P 500.

Dividends

NACCO Industries pays an annual dividend of $1.01 per share and has a dividend yield of 2.3%. China Coal Energy pays an annual dividend of $0.71 per share and has a dividend yield of 2.6%. NACCO Industries pays out 23.7% of its earnings in the form of a dividend. China Coal Energy pays out 17.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. NACCO Industries has increased its dividend for 1 consecutive years. China Coal Energy is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings & Valuation

This table compares NACCO Industries and China Coal Energy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NACCO Industries	$265.88 million	1.24	$33.74 million	$4.26	10.40
China Coal Energy	$26.35 billion	0.69	$2.53 billion	$3.98	6.91

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

Profitability

This table compares NACCO Industries and China Coal Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NACCO Industries	11.79%	7.72%	5.03%
China Coal Energy	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for NACCO Industries and China Coal Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NACCO Industries	0	1	0	0	2.00
China Coal Energy	1	0	0	0	1.00

Insider and Institutional Ownership

49.1% of NACCO Industries shares are owned by institutional investors. 43.0% of NACCO Industries shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

NACCO Industries beats China Coal Energy on 11 of the 15 factors compared between the two stocks.

About NACCO Industries

NACCO Industries, Inc., together with its subsidiaries, engages in the natural resources business. The company operates through three segments: Coal Mining, North American Mining, and Minerals Management. The Coal Mining segment operates surface coal mines under long-term contracts with power generation companies. Coal is surface mined in North Dakota and Mississippi. The North American Mining segment provides value-added contract mining and other services for producers of aggregates, activated carbon, lithium, and other industrial minerals; and contract mining services for independently owned mines and quarries in Florida, Texas, Arkansas, Virginia, and Nebraska. This segment also offers mining design and consulting services. The Minerals Management segment is involved in the leasing of its royalty and mineral interests to third-party exploration and production companies, and other mining companies, which grants them the rights to explore, develop, mine, produce, market, and sell gas, oil, and coal. NACCO Industries, Inc. was founded in 1913 and is headquartered in Cleveland, Ohio.

About China Coal Energy

China Coal Energy Company Limited primarily engages in the coal production and trading and coal chemical businesses in the People's Republic of China and internationally. The company offers polyolefin, methanol, urea, and other coal chemical products. It is also involved in the coal mining equipment manufacturing, pithead power generation, and other activities. The company was founded in 2006 and is based in Beijing, the People's Republic of China. China Coal Energy Company Limited operates as a subsidiary of China National Coal Group Co., Ltd.