BHP Billiton (NYSE: BBL) and Consol Energy (NYSE:CEIX) are both basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, dividends, risk, analyst recommendations, valuation and institutional ownership.
This table compares BHP Billiton and Consol Energy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This table compares BHP Billiton and Consol Energy’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|BHP Billiton||$38.29 billion||1.14||$5.89 billion||$2.53||16.40|
|Consol Energy||$1.41 billion||0.64||$67.62 million||$4.50||7.19|
BHP Billiton has higher revenue and earnings than Consol Energy. Consol Energy is trading at a lower price-to-earnings ratio than BHP Billiton, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
4.1% of BHP Billiton shares are owned by institutional investors. Comparatively, 94.6% of Consol Energy shares are owned by institutional investors. 0.7% of Consol Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This is a breakdown of current ratings and price targets for BHP Billiton and Consol Energy, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
BHP Billiton currently has a consensus price target of $38.00, suggesting a potential downside of 8.43%. Consol Energy has a consensus price target of $36.00, suggesting a potential upside of 11.28%. Given Consol Energy’s stronger consensus rating and higher probable upside, analysts plainly believe Consol Energy is more favorable than BHP Billiton.
BHP Billiton pays an annual dividend of $1.96 per share and has a dividend yield of 4.7%. Consol Energy does not pay a dividend. BHP Billiton pays out 77.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Consol Energy beats BHP Billiton on 7 of the 12 factors compared between the two stocks.
BHP Billiton Company Profile
BHP Billiton Plc, together with its subsidiaries, discovers, acquires, develops, and markets natural resources worldwide. It operates through four segments: Petroleum, Copper, Iron Ore, and Coal. The company explores for copper, silver, lead, zinc, molybdenum, uranium, gold, and iron ores, as well as metallurgical coal, thermal energy coal, and oil and gas properties. It also engages in the mining, smelting, and refining of nickel; the provision of freight, finance, and administrative services, as well as trading, marketing, and support services; and potash development activities. The company was formerly known as Billiton Plc. The company was incorporated in 1996 and is based in London, the United Kingdom. BHP Billiton Plc is a subsidiary of BHP Billiton Group.
Consol Energy Company Profile
CONSOL Energy Inc. produces and exports bituminous thermal and crossover metallurgical coal. The company owns and operates its mining operations in the Northern Appalachian Basin. Its flagship operation is the Pennsylvania Mining Complex (PAMC), which comprises three underground mines, including Bailey, Enlow Fork, and Harvey. The company also owns and operates the CONSOL Marine Terminal located in the port of Baltimore. As of December 31, 2017, it controlled 735.5 million tons of proven and probable coal reserves at PAMC. In addition, it controls approximately 1.6 billion tons of greenfield thermal and metallurgical coal reserves located in the coal-producing basins of the eastern United States. CONSOL Energy Inc. was founded in 1864 and is headquartered in Canonsburg, Pennsylvania.
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