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 business? We will compare the two businesses based on the strength of their dividends, earnings, profitability, valuation, analyst recommendations, institutional ownership and risk.
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% |
Institutional & Insider Ownership
61.4% of Hallador Energy shares are owned by institutional investors. Comparatively, 75.2% of American Electric Power shares are owned by institutional investors. 32.3% of Hallador Energy shares are owned by insiders. Comparatively, 0.1% of American Electric Power shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Hallador Energy | $634.48 million | 0.85 | $44.79 million | ($0.55) | -23.05 |
| American Electric Power | $19.00 billion | 2.72 | $2.21 billion | $4.99 | 19.49 |
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.
Risk & Volatility
Hallador Energy has a beta of 0.71, meaning that its stock price is 29% less volatile than the S&P 500. Comparatively, American Electric Power has a beta of 0.56, meaning that its stock price is 44% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent 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 |
Hallador Energy currently has a consensus target price of $15.00, suggesting a potential upside of 18.30%. American Electric Power has a consensus target price of $98.00, suggesting a potential upside of 0.77%. Given Hallador Energy’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Hallador Energy is more favorable than American Electric Power.
Summary
American Electric Power beats Hallador Energy on 10 of the 14 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.
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