Reviewing Ramaco Resources (METCB) and Its Competitors
by Sarita Garza · The Markets DailyRamaco Resources (NASDAQ:METCB – Get Free Report) is one of 1,987 publicly-traded companies in the “Metals & Mining” industry, but how does it contrast to its competitors? We will compare Ramaco Resources to related businesses based on the strength of its profitability, risk, valuation, analyst recommendations, earnings, dividends and institutional ownership.
Insider and Institutional Ownership
9.6% of Ramaco Resources shares are held by institutional investors. Comparatively, 15.8% of shares of all “Metals & Mining” companies are held by institutional investors. 17.7% of shares of all “Metals & Mining” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Ramaco Resources and its competitors gross revenue, earnings per share and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Ramaco Resources | $515.41 million | -$51.45 million | -4.21 |
| Ramaco Resources Competitors | $5.31 billion | $278.45 million | -28.72 |
Ramaco Resources’ competitors have higher revenue and earnings than Ramaco Resources. Ramaco Resources is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
Volatility and Risk
Ramaco Resources has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500. Comparatively, Ramaco Resources’ competitors have a beta of 1.02, meaning that their average share price is 2% more volatile than the S&P 500.
Dividends
Ramaco Resources pays an annual dividend of $0.18 per share and has a dividend yield of 4.0%. Ramaco Resources pays out -16.8% of its earnings in the form of a dividend. As a group, “Metals & Mining” companies pay a dividend yield of 9.5% and pay out 10.8% of their earnings in the form of a dividend.
Analyst Recommendations
This is a breakdown of current ratings and price targets for Ramaco Resources and its competitors, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ramaco Resources | 1 | 0 | 0 | 0 | 1.00 |
| Ramaco Resources Competitors | 6328 | 22461 | 32091 | 1767 | 2.47 |
As a group, “Metals & Mining” companies have a potential upside of 17.08%. Given Ramaco Resources’ competitors stronger consensus rating and higher probable upside, analysts plainly believe Ramaco Resources has less favorable growth aspects than its competitors.
Profitability
This table compares Ramaco Resources and its competitors’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ramaco Resources | -11.98% | -13.54% | -6.01% |
| Ramaco Resources Competitors | -1,161,736,352,322,426,600.00% | -10.89% | -2.11% |
Summary
Ramaco Resources competitors beat Ramaco Resources on 11 of the 15 factors compared.
About Ramaco Resources
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.