Alliance Resource Partners (NASDAQ:ARLP – Get Free Report) and SouthGobi Resources (OTCMKTS:SGQRF – Get Free Report) are both energy companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, risk, dividends, valuation and profitability.
Risk and Volatility
Alliance Resource Partners has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500. Comparatively, SouthGobi Resources has a beta of 78.62, meaning that its share price is 7,762% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and target prices for Alliance Resource Partners and SouthGobi Resources, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Alliance Resource Partners | 0 | 0 | 1 | 0 | 3.00 |
| SouthGobi Resources | 0 | 0 | 0 | 0 | 0.00 |
Institutional & Insider Ownership
18.1% of Alliance Resource Partners shares are owned by institutional investors. 16.8% of Alliance Resource Partners shares are owned by insiders. Comparatively, 0.1% of SouthGobi Resources shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Alliance Resource Partners and SouthGobi Resources’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Alliance Resource Partners | 10.30% | 14.27% | 9.04% |
| SouthGobi Resources | 5.59% | -15.18% | -1.55% |
Earnings & Valuation
This table compares Alliance Resource Partners and SouthGobi Resources”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Alliance Resource Partners | $2.45 billion | 1.19 | $360.86 million | $1.81 | 12.56 |
| SouthGobi Resources | $493.38 million | 0.24 | $92.50 million | $0.09 | 4.51 |
Alliance Resource Partners has higher revenue and earnings than SouthGobi Resources. SouthGobi Resources is trading at a lower price-to-earnings ratio than Alliance Resource Partners, indicating that it is currently the more affordable of the two stocks.
Summary
Alliance Resource Partners beats SouthGobi Resources on 13 of the 14 factors compared between the two stocks.
About Alliance Resource Partners
Alliance Resource Partners, L.P., a diversified natural resource company, produces and markets coal primarily to utilities and industrial users in the United States. The company operates through four segments: Illinois Basin Coal Operations, Appalachia Coal Operations, Oil & Gas Royalties, and Coal Royalties. It produces a range of thermal and metallurgical coal with sulfur and heat contents. The company operates seven underground mining complexes in Illinois, Indiana, Kentucky, Maryland, Pennsylvania, and West Virginia. In addition, it owns and leases oil and gas mineral interests and equity interests; and leases its coal mineral reserves and resources to its mining complexes; and leases land and operates a coal loading terminal on the Ohio River at Mt. Vernon, Indiana. Further, the company offers various mining technology products and services, including data network, communication and tracking systems, mining proximity detection systems, industrial collision avoidance systems, and data and analytics software. It also exports its products. The company was founded in 1971 and is headquartered in Tulsa, Oklahoma.
About SouthGobi Resources
SouthGobi Resources Ltd., together with its subsidiaries, operates as an integrated coal mining, development, and exploration company in Mongolia and Hong Kong. The company primarily explores for coking and thermal coal. Its flagship project is the Ovoot Tolgoi open pit coal mine located in the Umnugobi Aimag of Mongolia. The company was formerly known as SouthGobi Energy Resources Ltd. and changed its name to SouthGobi Resources Ltd. in May 2010. SouthGobi Resources Ltd. is based in Kowloon, Hong Kong.
Receive News & Ratings for Alliance Resource Partners Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Alliance Resource Partners and related companies with MarketBeat.com's FREE daily email newsletter.
