Warrior Met Coal (NYSE:HCC) and China Shenhua Energy (OTCMKTS:CSUAY) Head-To-Head Comparison

Warrior Met Coal (NYSE:HCC) and China Shenhua Energy (OTCMKTS:CSUAY) are both energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, valuation, profitability and institutional ownership.

Institutional & Insider Ownership

92.3% of Warrior Met Coal shares are held by institutional investors. 2.1% of Warrior Met Coal shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Warrior Met Coal and China Shenhua Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Warrior Met Coal	2.87%	2.01%	1.59%
China Shenhua Energy	17.88%	10.69%	7.91%

Dividends

Warrior Met Coal pays an annual dividend of $0.32 per share and has a dividend yield of 0.4%. China Shenhua Energy pays an annual dividend of $1.48 per share and has a dividend yield of 6.9%. Warrior Met Coal pays out 47.8% of its earnings in the form of a dividend. China Shenhua Energy pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Warrior Met Coal has increased its dividend for 1 consecutive years.

Risk & Volatility

Warrior Met Coal has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500. Comparatively, China Shenhua Energy has a beta of 0.26, indicating that its share price is 74% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for Warrior Met Coal and China Shenhua Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Warrior Met Coal	0	4	2	1	2.57
China Shenhua Energy	1	1	0	0	1.50

Warrior Met Coal currently has a consensus target price of $71.50, indicating a potential downside of 9.20%. China Shenhua Energy has a consensus target price of $32.50, indicating a potential upside of 51.51%. Given China Shenhua Energy’s higher possible upside, analysts plainly believe China Shenhua Energy is more favorable than Warrior Met Coal.

Earnings & Valuation

This table compares Warrior Met Coal and China Shenhua Energy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Warrior Met Coal	$1.53 billion	2.71	$250.60 million	$0.67	117.52
China Shenhua Energy	$47.07 billion	2.27	$8.68 billion	$1.48	14.49

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

Summary

Warrior Met Coal beats China Shenhua Energy on 10 of the 18 factors compared between the two stocks.

About Warrior Met Coal

Warrior Met Coal, Inc. produces and exports non-thermal metallurgical coal for the steel industry. It operates two underground mines located in Alabama. The company sells its metallurgical coal to a customer base of blast furnace steel producers located primarily in Europe, South America, and Asia. It also sells natural gas, which is extracted as a byproduct from coal production. Warrior Met Coal, Inc. was incorporated in 2015 and is headquartered in Brookwood, Alabama.

About China Shenhua Energy

China Shenhua Energy Company Limited, together with its subsidiaries, engages in the production and sale of coal and power; railway, port, and shipping transportation; and coal-to-olefins businesses in the People's Republic of China and internationally. It operates through six segments: Coal, Power Generation, Railway, Port, Shipping, and Coal Chemical. The Coal segment produces coal from surface and underground mines; and sells coal to power plants and metallurgical and coal chemical producers. The Power segment generates electric power through thermal, wind, water, and gas; and sells electric power to power grid companies. The Railway segment provides railway transportation services. The Port segment offers loading, transportation, and storage services. The Shipping segment provides shipment transportation services. The Coal Chemical segment produces and sells methanol; and polyethylene and polypropylene, as well as other by-products. The company was incorporated in 2004 and is based in Beijing, the People's Republic of China. China Shenhua Energy Company Limited operates as a subsidiary of China Energy Investment Corporation Limited.