Hallador Energy (HNRG) vs. NACCO Industries (NC) Head-To-Head Comparison

Hallador Energy (NASDAQ: HNRG) and NACCO Industries (NYSE:NC) are both small-cap oils/energy companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, risk, valuation, profitability and institutional ownership.

Insider and Institutional Ownership

55.8% of Hallador Energy shares are held by institutional investors. Comparatively, 48.6% of NACCO Industries shares are held by institutional investors. 46.2% of Hallador Energy shares are held by company insiders. Comparatively, 30.6% of NACCO Industries shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and recommmendations for Hallador Energy and NACCO Industries, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hallador Energy 0 0 2 0 3.00
NACCO Industries 0 0 0 0 N/A

Hallador Energy presently has a consensus price target of $10.50, indicating a potential upside of 80.41%. Given Hallador Energy’s higher possible upside, research analysts plainly believe Hallador Energy is more favorable than NACCO Industries.

Volatility and Risk

Hallador Energy has a beta of -0.46, meaning that its share price is 146% less volatile than the S&P 500. Comparatively, NACCO Industries has a beta of 0.37, meaning that its share price is 63% less volatile than the S&P 500.

Profitability

This table compares Hallador Energy and NACCO Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hallador Energy 2.88% 10.92% 4.64%
NACCO Industries 6.75% 18.54% 7.13%

Dividends

Hallador Energy pays an annual dividend of $0.16 per share and has a dividend yield of 2.7%. NACCO Industries pays an annual dividend of $1.98 per share and has a dividend yield of 4.8%. Hallador Energy pays out 61.5% of its earnings in the form of a dividend. NACCO Industries pays out 30.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Hallador Energy has raised its dividend for 3 consecutive years. NACCO Industries is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings & Valuation

This table compares Hallador Energy and NACCO Industries’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hallador Energy $281.45 million 0.62 $12.51 million $0.26 22.39
NACCO Industries $856.44 million 0.33 $29.60 million $6.48 6.30

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

Summary

NACCO Industries beats Hallador Energy on 9 of the 16 factors compared between the two stocks.

About Hallador Energy

Hallador Energy Company is an oil and gas exploration company focused on developing coal reserves in the Illinois Basin. The Company, through its subsidiary, Sunrise Coal, LLC, is engaged in coal mining in the state of Indiana serving the electric power generation industry. Its projects include Carlisle Mine, Ace in the Hole Mine, Oaktown 1 Mine, Oaktown 2 Mine and Bulldog Mine. It develops over 10 million tons of coal annually and has customers in the mid-west and southeastern United States. It has over 40.6 million tons of the Indiana coal V seam. It also has over 69.3 million controlled tons in both Knox County, Indiana and Lawrence County, Illinois. Its Carlisle underground coal mine is located near the town of Carlisle, Indiana in Sullivan County. The Ace mine is located approximately 40 miles northeast of the Carlisle Mine. Its Bulldog Mine controls over 35.8 million tons of coal reserves.

About NACCO Industries

NACCO Industries, Inc. is a holding company. The Company’s principal business includes mining. The Company operates through the NACoal segment. The Company’s subsidiary includes The North American Coal Corporation (NACoal). The Company’s NACoal segment mines coal for use in power generation and provides mining services for other natural resources companies. Coal is surface mined from NACoal’s mines in North Dakota, Texas, Mississippi, Louisiana and the Navajo Nation in New Mexico. NACoal’s operating coal mining subsidiaries include Bisti Fuels Company, LLC (Bisti), Caddo Creek Resources Company, LLC (Caddo Creek), Camino Real Fuels, LLC (Camino Real), The Coteau Properties Company (Coteau), Coyote Creek Mining Company, LLC (Coyote Creek), Demery Resources Company, LLC (Demery), The Falkirk Mining Company (Falkirk), Liberty Fuels Company, LLC (Liberty), Mississippi Lignite Mining Company (MLMC) and The Sabine Mining Company (Sabine).

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