Critical Survey: Ramaco Resources (NASDAQ:METCB) & Ramaco Resources (NASDAQ:METC)

Ramaco Resources (NASDAQ:METCBGet Free Report) and Ramaco Resources (NASDAQ:METCGet Free Report) are both small-cap energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, profitability and dividends.

Risk and Volatility

Ramaco Resources has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500. Comparatively, Ramaco Resources has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Ramaco Resources and Ramaco Resources, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ramaco Resources 0 0 0 0 0.00
Ramaco Resources 0 1 3 0 2.75

Ramaco Resources has a consensus price target of $21.67, indicating a potential downside of 17.02%. Given Ramaco Resources’ stronger consensus rating and higher probable upside, analysts clearly believe Ramaco Resources is more favorable than Ramaco Resources.

Institutional and Insider Ownership

9.6% of Ramaco Resources shares are owned by institutional investors. Comparatively, 74.5% of Ramaco Resources shares are owned by institutional investors. 36.2% of Ramaco Resources shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Ramaco Resources pays an annual dividend of $0.77 per share and has a dividend yield of 4.9%. Ramaco Resources pays an annual dividend of $0.28 per share and has a dividend yield of 1.1%. Ramaco Resources pays out -167.4% of its earnings in the form of a dividend. Ramaco Resources pays out -62.2% 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. Ramaco Resources is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings & Valuation

This table compares Ramaco Resources and Ramaco Resources”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ramaco Resources $666.29 million 1.31 $11.19 million ($0.46) -34.46
Ramaco Resources $666.29 million 2.16 $11.19 million ($0.45) -58.02

Ramaco Resources is trading at a lower price-to-earnings ratio than Ramaco Resources, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Ramaco Resources and Ramaco Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ramaco Resources -3.17% -5.70% -2.94%
Ramaco Resources -3.17% -5.55% -2.96%

Summary

Ramaco Resources beats Ramaco Resources on 9 of the 13 factors compared between the two stocks.

About Ramaco Resources

(Get Free Report)

Ramaco Resources, Inc. engages in the development, operation, and sale of metallurgical coal. Its development portfolio includes the Elk Creek project that covers an area of approximately 20,200 acres located in southern West Virginia; the Berwind property covering an area of approximately 62,500 acres situated on the border of West Virginia and Virginia; the Knox Creek property, which covers an area of approximately 64,050 acres is located in Virginia; the Maben property covering an area of approximately 28,000 acres situated in southwestern Pennsylvania southern West Virginia; and the Brook Mine property that covers an area of approximately 16,000 acres located in northeastern Wyoming. The company serves blast furnace steel mills and coke plants in the United States, as well as metallurgical coal consumers internationally. Ramaco Resources, Inc. was founded in 2015 and is headquartered in Lexington, Kentucky.

About Ramaco Resources

(Get Free Report)

Ramaco Resources, Inc. engages in the development, operation, and sale of metallurgical coal. Its development portfolio includes the Elk Creek project that covers an area of approximately 20,200 acres located in southern West Virginia; the Berwind property covering an area of approximately 62,500 acres situated on the border of West Virginia and Virginia; the Knox Creek property, which covers an area of approximately 64,050 acres is located in Virginia; the Maben property covering an area of approximately 28,000 acres situated in southwestern Pennsylvania southern West Virginia; and the Brook Mine property that covers an area of approximately 16,000 acres located in northeastern Wyoming. The company serves blast furnace steel mills and coke plants in the United States, as well as metallurgical coal consumers internationally. Ramaco Resources, Inc. was founded in 2015 and is headquartered in Lexington, Kentucky.

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