Reviewing Genesis Energy (NYSE:GEL) & Peabody Energy (NYSE:BTU)

Peabody Energy (NYSE:BTU) and Genesis Energy (NYSE:GEL) are both energy companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, institutional ownership, valuation and profitability.

Institutional and Insider Ownership

87.4% of Peabody Energy shares are held by institutional investors. Comparatively, 66.8% of Genesis Energy shares are held by institutional investors. 0.5% of Peabody Energy shares are held by company insiders. Comparatively, 0.7% of Genesis Energy shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

Peabody Energy has a beta of 0.33, indicating that its stock price is 67% less volatile than the S&P 500. Comparatively, Genesis Energy has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500.

Dividends

Peabody Energy pays an annual dividend of $0.30 per share and has a dividend yield of 1.4%. Genesis Energy pays an annual dividend of $0.80 per share and has a dividend yield of 5.5%. Peabody Energy pays out -20.0% of its earnings in the form of a dividend. 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 has increased its dividend for 1 consecutive years and Genesis Energy has increased its dividend for 1 consecutive years.

Earnings and Valuation

This table compares Peabody Energy and Genesis Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Peabody Energy	$3.86 billion	0.70	-$52.90 million	($1.50)	-14.79
Genesis Energy	$1.63 billion	1.10	-$440.40 million	$0.19	77.00

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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Peabody Energy	-4.56%	-5.22%	-3.22%
Genesis Energy	4.29%	55.96%	1.58%

Analyst Ratings

This is a breakdown of current recommendations for Peabody Energy and Genesis Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Peabody Energy	2	1	3	0	2.17
Genesis Energy	0	1	2	0	2.67

Peabody Energy presently has a consensus target price of $34.12, indicating a potential upside of 53.82%. Genesis Energy has a consensus target price of $17.50, indicating a potential upside of 19.62%. Given Peabody Energy’s higher possible upside, equities analysts clearly believe Peabody Energy is more favorable than Genesis Energy.

Summary

Genesis Energy beats Peabody Energy on 9 of the 15 factors compared between the two stocks.

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.

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.