San Juan Basin Royalty Trust (NYSE:SJT) versus Peabody Energy (NYSE:BTU) Head-To-Head Survey

San Juan Basin Royalty Trust (NYSE:SJT) and Peabody Energy (NYSE:BTU) are both energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, earnings, profitability, risk and dividends.

Volatility & Risk

San Juan Basin Royalty Trust has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500. Comparatively, Peabody Energy has a beta of 0.46, meaning that its stock price is 54% less volatile than the S&P 500.

Profitability

This table compares San Juan Basin Royalty Trust and Peabody Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
San Juan Basin Royalty Trust	N/A	-37.45%	-29.01%
Peabody Energy	-3.55%	-4.26%	-2.61%

Insider & Institutional Ownership

10.4% of San Juan Basin Royalty Trust shares are held by institutional investors. Comparatively, 87.4% of Peabody Energy shares are held by institutional investors. 0.5% of Peabody Energy shares are held by company 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.

Analyst Recommendations

This is a summary of recent ratings and target prices for San Juan Basin Royalty Trust and Peabody Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
San Juan Basin Royalty Trust	1	0	0	0	1.00
Peabody Energy	2	2	2	0	2.00

Peabody Energy has a consensus price target of $27.62, indicating a potential upside of 58.34%. Given Peabody Energy’s stronger consensus rating and higher possible upside, analysts plainly believe Peabody Energy is more favorable than San Juan Basin Royalty Trust.

Earnings and Valuation

This table compares San Juan Basin Royalty Trust and Peabody Energy”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
San Juan Basin Royalty Trust	$10,000.00	20,527.04	-$390,000.00	($0.01)	-440.40
Peabody Energy	$3.86 billion	0.55	-$52.90 million	($1.19)	-14.66

San Juan Basin Royalty Trust has higher earnings, but lower revenue than Peabody Energy. San Juan Basin Royalty Trust is trading at a lower price-to-earnings ratio than Peabody Energy, indicating that it is currently the more affordable of the two stocks.

Summary

Peabody Energy beats San Juan Basin Royalty Trust on 8 of the 13 factors compared between the two stocks.

About San Juan Basin Royalty Trust

San Juan Basin Royalty Trust is a passive royalty trust that holds interests in oil and natural gas properties in the San Juan Basin of northwestern New Mexico. Its assets are concentrated in producing properties, with natural gas representing a significant part of the underlying production. The trust does not explore for or produce oil and gas itself. Instead, it receives proceeds attributable to its royalty interests, pays trust expenses and distributes available funds to its unitholders. Established in 1980, the trust’s activities are focused on its interests in the San Juan Basin rather than on operating a diversified business or serving customers directly.

About Peabody Energy

Peabody Energy is an international coal company that explores for, mines, and sells coal. Its products include thermal coal, used primarily to generate electricity, and metallurgical coal, which is used in steelmaking. The company operates mining businesses in the United States and Australia and supplies customers in markets around the world. Its activities span coal production, processing, and marketing. Founded in 1883, Peabody has a long history in the coal industry. The company is headquartered in St. Louis, Missouri, and its shares trade on the New York Stock Exchange under the symbol BTU.