Financial Comparison: NACCO Industries (NYSE:NC) and Puda Coal (OTCMKTS:PUDA)

NACCO Industries (NYSE:NC) and Puda Coal (OTCMKTS:PUDA) are both energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.

Profitability

This table compares NACCO Industries and Puda Coal’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NACCO Industries	11.79%	7.72%	5.03%
Puda Coal	N/A	N/A	N/A

Institutional and Insider Ownership

49.1% of NACCO Industries shares are owned by institutional investors. 43.0% of NACCO Industries shares are owned by insiders. Comparatively, 48.3% of Puda Coal 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.

Analyst Ratings

This is a breakdown of recent recommendations for NACCO Industries and Puda Coal, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NACCO Industries	0	1	0	0	2.00
Puda Coal	0	0	0	0	0.00

Given Puda Coal’s higher probable upside, analysts plainly believe Puda Coal is more favorable than NACCO Industries.

Earnings and Valuation

This table compares NACCO Industries and Puda Coal”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NACCO Industries	$237.71 million	1.24	$33.74 million	$4.26	9.31
Puda Coal	N/A	N/A	N/A	N/A	N/A

NACCO Industries has higher revenue and earnings than Puda Coal.

Summary

NACCO Industries beats Puda Coal on 6 of the 8 factors compared between the two stocks.

About NACCO Industries

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 with power generation companies. Coal is surface mined in North Dakota and Mississippi. The North American Mining segment provides value-added contract mining and other services for producers of aggregates, activated carbon, lithium, and other industrial minerals; and contract mining services for independently owned mines and quarries in Florida, Texas, Arkansas, Virginia, and Nebraska. This segment also offers mining design and consulting services. 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. NACCO Industries, Inc. was founded in 1913 and is headquartered in Cleveland, Ohio.

About Puda Coal

Puda Coal, Inc., through its indirect equity ownership in Shanxi Puda Coal Group Co., Ltd., supplies metallurgical coking coal in the People's Republic of China. Its processed coking coal is used by coke and steel producers for the purpose of making the coke required for the steel manufacturing process. The company primarily markets its products in the Shanxi Province, Inner Mongolia Autonomous Region, Hebei Province, Beijing, and Tianjin. It also operates as an acquirer and consolidator of two coal mine consolidation projects, including the Pinglu project in Pinglu County; and the Jianhe project in Huozhou County, Shanxi Province. The company was founded in 2004 and is headquartered in Taiyuan, the People's Republic of China.