Horsehead (OTCMKTS: ZINCQ) and Peabody Energy (NYSE:BTU) are both basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, earnings, institutional ownership and profitability.
Insider and Institutional Ownership
95.2% of Peabody Energy shares are owned by institutional investors. 1.3% of Peabody Energy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This table compares Horsehead and Peabody Energy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current recommendations for Horsehead and Peabody Energy, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Peabody Energy has a consensus price target of $36.25, indicating a potential upside of 2.08%. Given Peabody Energy’s higher probable upside, analysts clearly believe Peabody Energy is more favorable than Horsehead.
Earnings and Valuation
This table compares Horsehead and Peabody Energy’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Peabody Energy||$4.72 billion||0.79||-$729.30 million||N/A||N/A|
Horsehead has higher earnings, but lower revenue than Peabody Energy.
Peabody Energy beats Horsehead on 8 of the 8 factors compared between the two stocks.
Horsehead Holding Corp. is a producer of zinc and nickel-based products sold primarily to customers throughout the United States and Canada. The Company is also a recycler of electric arc furnace (EAF) dust in the United States and a recycler of hazardous and non-hazardous waste for the specialty steel industry. It operates in three segments, which include Horsehead, Zochem and INMETCO. Horsehead is engaged in producing zinc metal and recycling of EAF dust. Zochem is engaged in producing zinc oxide in North America. INMETCO is engaged in recycling of nickel-bearing waste generated by the stainless and specialty steel producers, and recycling of nickel-cadmium and other types of batteries in North America. The Company’s products are used in a range of applications, including in the galvanizing of sheet and fabricated steel products, as components in rubber tires, alkaline batteries, paint, chemicals and pharmaceuticals and as a remelt alloy in the production of stainless steel.
About Peabody Energy
Peabody Energy Corporation is a coal company. The Company’s segments include Powder River Basin Mining, Midwestern U.S. Mining, Western U.S. Mining, Australian Metallurgical Mining, Australian Thermal Mining, Trading and Brokerage, and Corporate and Other. Its Powder River Basin Mining operations consist of its mines in Wyoming. Midwestern U.S. Mining operations reflect the Company’s Illinois and Indiana mining operations. Western U.S. Mining operations reflect the aggregation of the New Mexico, Arizona and Colorado mining operations. Australian Metallurgical Mining operations consist of mines in Queensland and New South Wales, Australia. Australian Thermal Mining operations consist of mines in New South Wales, Australia. Its Trading and Brokerage segment engages in the direct and brokered trading of coal and freight-related contracts through the trading and business offices. Its Corporate and Other includes selling and administrative expenses, and corporate hedging activities.
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