China Coal Energy (OTCMKTS:CCOZY) & Genesis Energy (NYSE:GEL) Financial Analysis

Genesis Energy (NYSE:GEL) and China Coal Energy (OTCMKTS:CCOZY) are both energy companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, valuation, earnings, profitability, analyst recommendations, dividends and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Genesis Energy	4.29%	55.96%	1.58%
China Coal Energy	N/A	N/A	N/A

Volatility and Risk

Genesis Energy has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500. Comparatively, China Coal Energy has a beta of -0.13, indicating that its stock price is 113% less volatile than the S&P 500.

Insider and Institutional Ownership

66.8% of Genesis Energy shares are held by institutional investors. 0.7% of Genesis Energy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Genesis Energy and China Coal Energy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Genesis Energy	$1.63 billion	1.08	-$440.40 million	$0.19	75.71
China Coal Energy	$20.59 billion	0.86	$2.02 billion	$3.98	6.69

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Genesis Energy	0	1	2	0	2.67
China Coal Energy	0	1	0	0	2.00

Genesis Energy presently has a consensus target price of $17.50, indicating a potential upside of 21.65%. Given Genesis Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Genesis Energy is more favorable than China Coal Energy.

Dividends

Genesis Energy pays an annual dividend of $0.80 per share and has a dividend yield of 5.6%. China Coal Energy pays an annual dividend of $0.83 per share and has a dividend yield of 3.1%. Genesis Energy pays out 421.1% 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 20.9% of its earnings in the form of a dividend. Genesis Energy has raised its dividend for 1 consecutive years. Genesis Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Genesis Energy beats China Coal Energy on 13 of the 17 factors compared between the two stocks.

About Genesis Energy

Genesis Energy, L.P. provides integrated suite of midstream services in crude oil and natural gas industry in the United States. It operates through Offshore Pipeline Transportation, Soda and Sulfur Services, Marine Transportation, and Onshore Facilities and Transportation segments. The Offshore Pipeline Transportation segment engages in offshore crude oil and natural gas pipeline transportation and handling operations, as well as deep water pipeline servicing. This segment also owns interests in offshore crude oil and natural gas pipeline systems, platforms, and related infrastructure. The Soda and Sulfur Services segment produces, markets, and sells soda ash; and provides sulfur removal services. This segment also owns and operates soda ash production facilities, underground trona ore mines and brine solution mining operations and related equipment, and logistics and other assets; and sells sodium hydrosulfide and caustic soda to industrial and commercial companies involved in the mining of base metals. The Marine Transportation segment offers waterborne transportation of petroleum and crude oil in North America. This segment owns a fleet of 91 barges and 42 push/tow boats. The Onshore Facilities and Transportation segment offers onshore facilities and transportation services to crude oil refineries and producers by purchasing, transporting, storing, blending, and marketing crude oil and refined products; and operates trucks, trailers, railcars, and terminals and tankage in various locations along the Gulf Coast. This segment also transports crude oil, as well as owns four onshore crude oil pipeline systems and four operational crude oil rail unloading facilities. The company was incorporated in 1996 and is headquartered in Houston, Texas.

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.