Genesis Energy (NYSE:GEL – Get Free Report) and Peabody Energy (NYSE:BTU – Get Free Report) are both energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, profitability, analyst recommendations, earnings and risk.
Profitability
This table compares Genesis Energy and Peabody 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% |
| Peabody Energy | -4.56% | -5.22% | -3.22% |
Analyst Recommendations
This is a summary of current recommendations and price targets for Genesis Energy and Peabody 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 |
| Peabody Energy | 2 | 1 | 3 | 0 | 2.17 |
Institutional & Insider Ownership
66.8% of Genesis Energy shares are owned by institutional investors. Comparatively, 87.4% of Peabody Energy shares are owned by institutional investors. 0.7% of Genesis Energy shares are owned by company insiders. Comparatively, 0.5% 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 stock is poised for long-term growth.
Earnings & Valuation
This table compares Genesis Energy and Peabody Energy”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Genesis Energy | $1.63 billion | 1.06 | -$440.40 million | $0.19 | 74.11 |
| Peabody Energy | $3.86 billion | 0.67 | -$52.90 million | ($1.50) | -14.06 |
Peabody Energy has higher revenue and earnings than Genesis Energy. Peabody 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.
Dividends
Genesis Energy pays an annual dividend of $0.80 per share and has a dividend yield of 5.7%. Peabody Energy pays an annual dividend of $0.30 per share and has a dividend yield of 1.4%. 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. Peabody Energy pays out -20.0% of its earnings in the form of a dividend. Genesis Energy has raised its dividend for 1 consecutive years and Peabody Energy has raised its dividend for 1 consecutive years.
Risk and Volatility
Genesis Energy has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500. Comparatively, Peabody Energy has a beta of 0.33, meaning that its share price is 67% less volatile than the S&P 500.
Summary
Genesis Energy beats Peabody Energy on 9 of the 15 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 Peabody Energy
Peabody Energy Corporation engages in coal mining business in the United States, Japan, Taiwan, Australia, India, Brazil, Belgium, Chile, France, Indonesia, China, Vietnam, South Korea, Germany, and internationally. The company operates through Seaborne Thermal, Seaborne Metallurgical, Powder River Basin, Other U.S. Thermal, and Corporate and Other segments. It is involved in the mining, preparation, and sale of thermal coal primarily to electric utilities; mining bituminous and sub-bituminous coal deposits; low sulfur and high British thermal unit thermal coal; and mining metallurgical coal, such as hard coking coal, semi-hard coking coal, semi-soft coking coal, and pulverized coal injection coal. The company supplies coal primarily to electricity generators, industrial facilities, and steel manufacturers. It also engages in marketing and brokering of coal from other coal producers; trading of coal and freight-related contracts, as well as provides transportation-related services. The company was founded in 1883 and is headquartered in Saint Louis, Missouri.
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