Hallador Energy (NASDAQ: HNRG) and BHP Billiton (NYSE:BBL) are both oils/energy companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, earnings, institutional ownership, analyst recommendations and dividends.
Insider & Institutional Ownership
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55.7% of Hallador Energy shares are held by institutional investors. Comparatively, 4.2% of BHP Billiton shares are held by institutional investors. 45.1% of Hallador Energy shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Hallador Energy pays an annual dividend of $0.16 per share and has a dividend yield of 2.3%. BHP Billiton pays an annual dividend of $1.96 per share and has a dividend yield of 4.2%. Hallador Energy pays out 30.2% of its earnings in the form of 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.
This is a breakdown of recent ratings and price targets for Hallador Energy and BHP Billiton, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Hallador Energy presently has a consensus price target of $10.00, indicating a potential upside of 44.72%. BHP Billiton has a consensus price target of $38.00, indicating a potential downside of 18.70%. Given Hallador Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Hallador Energy is more favorable than BHP Billiton.
Valuation & Earnings
This table compares Hallador Energy and BHP Billiton’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Hallador Energy||$271.63 million||0.76||$32.04 million||$0.53||13.04|
|BHP Billiton||$38.29 billion||1.29||$5.89 billion||$2.53||18.47|
BHP Billiton has higher revenue and earnings than Hallador Energy. Hallador 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.
This table compares Hallador Energy and BHP Billiton’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
Hallador Energy has a beta of -0.12, meaning that its stock price is 112% less volatile than the S&P 500. Comparatively, BHP Billiton has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500.
Hallador Energy Company Profile
Hallador Energy Company, through its subsidiaries, engages in the mining, production, and sale of steam coal for the electric power generation industry in the United States. The company holds interests in the Oaktown 1 underground mine located in Knox County, Indiana; the Oaktown 2 mine located in Knox County, Indiana and Lawrence County, Illinois; Carlisle underground coal mine located near the town of Carlisle, Indiana; and Ace in the Hole mine located near Clay City, Indiana. It is also involved in oil and gas exploration activities in Michigan and Indiana. The company was founded in 1949 and is headquartered in Denver, Colorado.
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.