Analyzing Warrior Met Coal (HCC) and The Competition

Warrior Met Coal (NYSE:HCC) is one of 1,989 publicly-traded companies in the “Metals & Mining” industry, but how does it weigh in compared to its competitors? We will compare Warrior Met Coal to similar companies based on the strength of its profitability, valuation, institutional ownership, risk, dividends, analyst recommendations and earnings.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Warrior Met Coal and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Warrior Met Coal	0	2	4	1	2.86
Warrior Met Coal Competitors	6279	22348	31916	1744	2.47

Warrior Met Coal presently has a consensus target price of $102.60, suggesting a potential upside of 11.20%. As a group, “Metals & Mining” companies have a potential upside of 29.44%. Given Warrior Met Coal’s competitors higher probable upside, analysts plainly believe Warrior Met Coal has less favorable growth aspects than its competitors.

Institutional & Insider Ownership

92.3% of Warrior Met Coal shares are owned by institutional investors. Comparatively, 16.1% of shares of all “Metals & Mining” companies are owned by institutional investors. 2.1% of Warrior Met Coal shares are owned by insiders. Comparatively, 17.6% of shares of all “Metals & Mining” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Warrior Met Coal and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Warrior Met Coal	$1.31 billion	$57.00 million	22.18
Warrior Met Coal Competitors	$5.05 billion	$267.28 million	-21.54

Warrior Met Coal’s competitors have higher revenue and earnings than Warrior Met Coal. Warrior Met Coal 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.

Dividends

Warrior Met Coal pays an annual dividend of $0.32 per share and has a dividend yield of 0.3%. Warrior Met Coal pays out 7.7% of its earnings in the form of a dividend. As a group, “Metals & Mining” companies pay a dividend yield of 9.1% and pay out 10.6% of their earnings in the form of a dividend. Warrior Met Coal has raised its dividend for 1 consecutive years.

Volatility & Risk

Warrior Met Coal has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500. Comparatively, Warrior Met Coal’s competitors have a beta of 0.99, suggesting that their average share price is 1% less volatile than the S&P 500.

Profitability

This table compares Warrior Met Coal and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Warrior Met Coal	13.05%	10.02%	7.84%
Warrior Met Coal Competitors	-1,158,604,987,491,368,400.00%	48.22%	-2.34%

Summary

Warrior Met Coal beats its competitors on 8 of the 15 factors compared.

Warrior Met Coal Company Profile

Warrior Met Coal, Inc. produces and exports non-thermal metallurgical coal for the steel industry. It operates two underground mines located in Alabama. The company sells its metallurgical coal to a customer base of blast furnace steel producers located primarily in Europe, South America, and Asia. It also sells natural gas, which is extracted as a byproduct from coal production. Warrior Met Coal, Inc. was incorporated in 2015 and is headquartered in Brookwood, Alabama.