Comparing HudBay Minerals (NYSE:HBM) & Ramaco Resources (NASDAQ:METCB)

Ramaco Resources (NASDAQ:METCB) and HudBay Minerals (NYSE:HBM) are both materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, dividends, analyst recommendations and profitability.

Insider and Institutional Ownership

9.6% of Ramaco Resources shares are owned by institutional investors. Comparatively, 57.8% of HudBay Minerals shares are owned by institutional investors. 0.3% of HudBay Minerals shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Ramaco Resources and HudBay Minerals’ 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%
HudBay Minerals	27.48%	9.47%	5.44%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ramaco Resources	$536.62 million	0.54	-$51.45 million	($1.07)	-4.30
HudBay Minerals	$2.21 billion	5.10	$568.50 million	$1.70	14.93

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

Volatility and Risk

Ramaco Resources has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500. Comparatively, HudBay Minerals has a beta of 1.58, meaning that its share price is 58% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Ramaco Resources and HudBay Minerals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ramaco Resources	1	0	0	0	1.00
HudBay Minerals	0	2	10	0	2.83

HudBay Minerals has a consensus target price of $31.33, suggesting a potential upside of 23.45%. Given HudBay Minerals’ stronger consensus rating and higher possible upside, analysts plainly believe HudBay Minerals is more favorable than Ramaco Resources.

Summary

HudBay Minerals beats Ramaco Resources on 14 of the 14 factors compared between the two stocks.

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.

About HudBay Minerals

Hudbay Minerals Inc., a diversified mining company, focuses on the exploration, development, operation, and optimization of properties in North and South America. It produces copper concentrates containing gold, silver, and molybdenum; gold concentrates containing zinc; zinc concentrates; molybdenum concentrates; and silver/gold doré. The company's flagship project is the 100% owned Constancia mine located in the Province of Chumbivilcas in southern Peru. Hudbay Minerals Inc. was founded in 1927 and is based in Toronto, Canada.