Hallador Energy (NASDAQ:HNRG – Get Free Report) and American Electric Power (NASDAQ:AEP – Get Free Report) are both oils/energy companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.
Insider & Institutional Ownership
61.4% of Hallador Energy shares are held by institutional investors. Comparatively, 75.2% of American Electric Power shares are held by institutional investors. 32.3% of Hallador Energy shares are held by insiders. Comparatively, 0.1% of American Electric Power shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of current ratings and recommmendations for Hallador Energy and American Electric Power, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Hallador Energy | 0 | 0 | 2 | 0 | 3.00 |
| American Electric Power | 1 | 8 | 5 | 0 | 2.29 |
Valuation & Earnings
This table compares Hallador Energy and American Electric Power”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Hallador Energy | $429.36 million | 1.23 | $44.79 million | ($0.55) | -22.62 |
| American Electric Power | $19.60 billion | 2.57 | $2.21 billion | $4.99 | 18.94 |
American Electric Power has higher revenue and earnings than Hallador Energy. Hallador Energy is trading at a lower price-to-earnings ratio than American Electric Power, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Hallador Energy and American Electric Power’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Hallador Energy | -4.85% | -6.71% | -3.39% |
| American Electric Power | 13.48% | 11.41% | 3.01% |
Risk and Volatility
Hallador Energy has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500. Comparatively, American Electric Power has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500.
Dividends
Hallador Energy pays an annual dividend of $0.16 per share and has a dividend yield of 1.3%. American Electric Power pays an annual dividend of $3.72 per share and has a dividend yield of 3.9%. Hallador Energy pays out -29.1% of its earnings in the form of a dividend. American Electric Power pays out 74.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. American Electric Power has increased its dividend for 15 consecutive years. American Electric Power is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
American Electric Power beats Hallador Energy on 12 of the 17 factors compared between the two stocks.
About Hallador Energy
Hallador Energy Company, through its subsidiaries, engages in the production of steam coal in the State of Indiana for the electric power generation industry. The company owns the Oaktown Mine 1 and Oaktown Mine 2 underground mines in Oaktown; Freelandville Center Pit surface mine in Freelandville; and Prosperity Surface mine in Petersburg, Indiana. It is also involved in gas exploration activities in Indiana; and operation of logistics transport facility. Hallador Energy Company was founded in 1949 and is headquartered in Terre Haute, Indiana.
About American Electric Power
American Electric Power Company, Inc., an electric public utility holding company, engages in the generation, transmission, and distribution of electricity for sale to retail and wholesale customers in the United States. It operates through Vertically Integrated Utilities, Transmission and Distribution Utilities, AEP Transmission Holdco, and Generation & Marketing segments. The company generates electricity using coal and lignite, natural gas, renewable, nuclear, hydro, solar, wind, and other energy sources. It also supplies and markets electric power at wholesale to other electric utility companies, rural electric cooperatives, municipalities, and other market participants. American Electric Power Company, Inc. was incorporated in 1906 and is headquartered in Columbus, Ohio.
Receive News & Ratings for Hallador Energy Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Hallador Energy and related companies with MarketBeat.com's FREE daily email newsletter.
