Critical Analysis: Yankuang Energy Group (OTCMKTS:YZCAY) and NACCO Industries (NYSE:NC)

NACCO Industries (NYSE:NCGet Rating) and Yankuang Energy Group (OTCMKTS:YZCAYGet Rating) are both oils/energy companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, earnings, analyst recommendations and valuation.

Institutional & Insider Ownership

50.3% of NACCO Industries shares are owned by institutional investors. 40.7% of NACCO Industries shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

NACCO Industries pays an annual dividend of $0.83 per share and has a dividend yield of 1.5%. Yankuang Energy Group pays an annual dividend of $0.79 per share and has a dividend yield of 2.3%. NACCO Industries pays out 11.6% of its earnings in the form of a dividend. NACCO Industries has increased its dividend for 38 consecutive years.

Profitability

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

Net Margins Return on Equity Return on Assets
NACCO Industries 25.65% 15.07% 10.44%
Yankuang Energy Group N/A N/A N/A

Valuation & Earnings

This table compares NACCO Industries and Yankuang Energy Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NACCO Industries $191.85 million 2.17 $48.13 million $7.17 7.93
Yankuang Energy Group $10.02 billion N/A $986.63 million N/A N/A

Yankuang Energy Group has higher revenue and earnings than NACCO Industries.

Risk and Volatility

NACCO Industries has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500. Comparatively, Yankuang Energy Group has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for NACCO Industries and Yankuang Energy Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NACCO Industries 0 0 0 0 N/A
Yankuang Energy Group 1 1 0 0 1.50

Summary

NACCO Industries beats Yankuang Energy Group on 7 of the 11 factors compared between the two stocks.

NACCO Industries Company Profile (Get Rating)

NACCO Industries, Inc., together with its subsidiaries, engages in the natural resources business. The company operates through three segments: Coal Mining, North American Mining, and Minerals Management. The Coal Mining segment operates surface coal mines under long-term contracts for power generation companies and an activated carbon producer in North Dakota, Texas, Mississippi, and Louisiana in the United States, as well as Navajo Nation in New Mexico. The North American Mining segment provides value-added contract mining and other services for producers of aggregates, lithium, and other minerals; and contract mining services for independently owned mines and quarries in Florida, Texas, Arkansas, and Indiana. The Minerals Management segment is involved in the leasing of its royalty and mineral interests to third-party exploration and production companies, and other mining companies, which grants them the rights to explore, develop, mine, produce, market, and sell gas, oil, and coal. The company was founded in 1913 and is headquartered in Cleveland, Ohio.

Yankuang Energy Group Company Profile (Get Rating)

Yankuang Energy Group Company Limited engages in the mining, preparation, and sale of coal worldwide. It offers thermal, PCI, and coking coal for electric power, metallurgy and chemical industry, etc.; produces and sells coal chemicals, as well as electricity and related heat supply services; explores for potash mineral; manufactures, installs, repairs, and sells coal mining and excavating equipment, cable, and electrical equipment; and sells construction materials and petroleum products. The company also provides railway, river, and lakes transportation; underground mines management; mining materials testing; equity investment fund and corporate asset management, investment advisory and management, foreign investment fund, import and export, and international trading; solar and wind power, and production management; educational software development and event planning; and coal mining technology development, transfer, and consultation services, as well as operates as a trade broker and agent. In addition, it engages in the wholesale of coal and non-ferrous metals; house and financial leasing; logistics storage and leasing; development of charcoal products; LTCC technology development and equipment rental operations; manufacturing and sale of cable and rubber products; production and processing of steel engineering components; processing, production, and sale of FischerTropsch synthesis catalyst, composite pipe, and plastic profile products; real estate development and operation, property management, garden greening engineering, and sewage treatment and rental housing agency services; and issuing subordinated capital notes. The company was formerly known as Yanzhou Coal Mining Company Limited and changed its name to Yankuang Energy Group Company Limited in December 2021. The company was founded in 1973 and is based in Zoucheng, the People's Republic of China.

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