China Precision Steel (OTCMKTS:CPSL) and SunCoke Energy Partners (NYSE:SXCP) are both basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.
Institutional & Insider Ownership
7.1% of SunCoke Energy Partners shares are held by institutional investors. 0.4% of China Precision Steel shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
SunCoke Energy Partners pays an annual dividend of $1.60 per share and has a dividend yield of 12.6%. China Precision Steel does not pay a dividend. SunCoke Energy Partners pays out 131.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. SunCoke Energy Partners has increased its dividend for 3 consecutive years.
This is a breakdown of current recommendations for China Precision Steel and SunCoke Energy Partners, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|China Precision Steel||0||0||0||0||N/A|
|SunCoke Energy Partners||0||1||1||0||2.50|
SunCoke Energy Partners has a consensus price target of $20.00, suggesting a potential upside of 56.99%. Given SunCoke Energy Partners’ higher probable upside, analysts plainly believe SunCoke Energy Partners is more favorable than China Precision Steel.
This table compares China Precision Steel and SunCoke Energy Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|China Precision Steel||N/A||N/A||N/A|
|SunCoke Energy Partners||6.45%||9.47%||3.49%|
Earnings and Valuation
This table compares China Precision Steel and SunCoke Energy Partners’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|China Precision Steel||N/A||N/A||N/A||N/A||N/A|
|SunCoke Energy Partners||$892.10 million||0.66||$57.50 million||$1.22||10.44|
SunCoke Energy Partners has higher revenue and earnings than China Precision Steel.
SunCoke Energy Partners beats China Precision Steel on 9 of the 11 factors compared between the two stocks.
About China Precision Steel
China Precision Steel, Inc., a steel processing company, manufactures and sells cold-rolled precision steel products. It produces and sells precision cold-rolled steel products ranging from 7.5 mm to 0.03 mm. The company's steel products comprise cold-rolled and hard-rolled low carbon steel products for steel roofing, food packaging, dry batteries, electronic devices, and kitchen tools; cold-rolled and hard-rolled high carbon steel products for automobile parts and components, grinding pieces, saw blades, and weaving needles; and tailor made cold rolled steel products. It also provides heat treatment, and cutting and slitting services for medium and high-carbon hot-rolled steel strips not exceeding 7.5 mm thickness. The company sells its products to component manufacturers and directly to the end-users in the People's Republic of China, Indonesia, Thailand, the Caribbean, Nigeria, Ethiopia, and Turkey. China Precision Steel, Inc. is headquartered in Sheung Wan, Hong Kong.
About SunCoke Energy Partners
SunCoke Energy Partners, L.P., a master limited partnership, produces and sells coke used in the blast furnace production of steel in the United States. It operates through two segments, Domestic Coke and Logistics. The company also provides metallurgical and thermal coal mixing and handling terminal services, as well as operates Convent Marine Terminal, an export terminal in the United States Gulf Coast located in Convent, Louisiana. In addition, it offers coal handling and/or mixing services to steel, coke, electric utility, and coal mining customers. The company was founded in 2012 and is headquartered in Lisle, Illinois. SunCoke Energy Partners, L.P. operates as a subsidiary of Sun Coal & Coke LLC.
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