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Better Buy: CONSOL Energy vs. American Capital Agency

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In today's ­first round match-up of The Motley Fool Better-Buy Tournament, CONSOL Energy squares off against American Capital Agency in a battle to determine which stock is the better buy now. The 64-company tournament pits two Motley Fool analysts against each as they make the case for their stocks with the winner determined by you, the readers.

Motley Fool energy analyst Taylor Muckerman thinks CONSOL Energy, (NYSE: CNX  ) should move to the next round because of its accelerating shift into natural gas. While it might be the oldest coal producer in the nation, natural gas is CONSOL's future. To avoid being blindsided, though, CONSOL wisely chose to hold onto its lower cost thermal coal mines and its solely owned export terminal as a nice hedge while the market shakes itself out. Other coal companies are likely jealous of this flexibility, so don't be jealous if CONSOL moves on.

Motley Fool Financials analyst David Hanson believes American Capital Agency (NASDAQ: AGNC  ) should move on to the next round because of the stock's ultra-cheap price today. American Capital Agency trades at a discount to book value and has historically traded at a premium to book value. The stock's cheap price is not a good indicator of the underlying business – which continues to produce positive returns. In addition, David points to the Federal Reserve's intentions to exit the Agency MBS market as a reason to be optimistic about American Capital Agency going forward. 

Watch these analysts square off in the video below and then vote for a winner. Then check out the other companies in the Motley Fool Better-Buy Bracket

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Cast your vote in the poll below the video!


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Taylor Muckerman
TMFrunAMuck

Taylor is an Associate GM in our Fool International operations. Prior to that he covered all things Energy + Materials as an analyst. Over the years, he has built an investing skill set to rely on when evaluating companies inside and out. While at the Fool, he has made appearances on CNBC and Fox Business. In addition, he completed his MBA at the University of Maryland and will sit for the Level II CFA Exam.

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Related Tickers

8/28/2015 4:00 PM
AGNC $19.36 Down -0.19 -0.97%
American Capital A… CAPS Rating: ****
CNX $14.39 Up +0.53 +3.82%
CONSOL Energy, Inc… CAPS Rating: **