China Shenhua Energy (OTCMKTS:CSUAY – Get Free Report) and China Coal Energy (OTCMKTS:CCOZY – Get Free Report) are both large-cap energy companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, risk, earnings, dividends and institutional ownership.
Risk and Volatility
China Shenhua Energy has a beta of 0.26, meaning that its stock price is 74% less volatile than the S&P 500. Comparatively, China Coal Energy has a beta of -0.21, meaning that its stock price is 121% less volatile than the S&P 500.
Dividends
China Shenhua Energy pays an annual dividend of $1.48 per share and has a dividend yield of 6.6%. China Coal Energy pays an annual dividend of $0.71 per share and has a dividend yield of 2.6%. 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. China Coal Energy pays out 17.8% of its earnings in the form of a dividend.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| China Shenhua Energy | 1 | 1 | 0 | 0 | 1.50 |
| China Coal Energy | 1 | 0 | 0 | 0 | 1.00 |
China Shenhua Energy presently has a consensus price target of $32.50, indicating a potential upside of 45.35%. Given China Shenhua Energy’s stronger consensus rating and higher probable upside, research analysts clearly believe China Shenhua Energy is more favorable than China Coal Energy.
Valuation and Earnings
This table compares China Shenhua Energy and China Coal Energy”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| China Shenhua Energy | $47.07 billion | 2.36 | $8.68 billion | $1.48 | 15.11 |
| China Coal Energy | $26.35 billion | 0.69 | $2.53 billion | $3.98 | 6.91 |
China Shenhua Energy has higher revenue and earnings than China Coal Energy. China Coal Energy is trading at a lower price-to-earnings ratio than China Shenhua Energy, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares China Shenhua Energy and China Coal Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| China Shenhua Energy | 17.88% | 10.69% | 7.91% |
| China Coal Energy | N/A | N/A | N/A |
Summary
China Shenhua Energy beats China Coal Energy on 11 of the 13 factors compared between the two stocks.
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.
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.
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