Critical Review: Ramaco Resources (METCB) & The Competition

Ramaco Resources (NASDAQ:METCB) is one of 1,984 publicly-traded companies in the “Metals & Mining” industry, but how does it compare to its peers? We will compare Ramaco Resources to similar businesses based on the strength of its institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Ramaco Resources and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ramaco Resources	1	0	0	0	1.00
Ramaco Resources Competitors	6424	22627	32348	1801	2.47

As a group, “Metals & Mining” companies have a potential upside of 29.69%. Given Ramaco Resources’ peers stronger consensus rating and higher possible upside, analysts plainly believe Ramaco Resources has less favorable growth aspects than its peers.

Risk and Volatility

Ramaco Resources has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500. Comparatively, Ramaco Resources’ peers have a beta of 0.96, indicating that their average share price is 4% less volatile than the S&P 500.

Insider & Institutional Ownership

9.6% of Ramaco Resources shares are owned by institutional investors. Comparatively, 16.1% of shares of all “Metals & Mining” companies are owned by institutional investors. 17.6% of shares of all “Metals & Mining” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Ramaco Resources and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Ramaco Resources	$536.62 million	-$51.45 million	-3.36
Ramaco Resources Competitors	$4.65 billion	$278.26 million	-26.20

Ramaco Resources’ peers have higher revenue and earnings than Ramaco Resources. Ramaco Resources is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ramaco Resources	-12.24%	-16.07%	-6.26%
Ramaco Resources Competitors	-1,161,736,352,322,426,600.00%	-52.89%	-2.06%

Summary

Ramaco Resources peers beat Ramaco Resources on 9 of the 13 factors compared.

About Ramaco Resources

Ramaco Resources, Inc. is a U.S. coal company focused on producing and developing metallurgical coal, a key input in steelmaking. Its products are sold to steelmakers, coke producers and other industrial customers in domestic and international markets. The company’s mining operations and development properties are concentrated in the Appalachian coal region, including West Virginia and Virginia. Ramaco is also advancing its Brook Mine project in Wyoming, where it is evaluating coal and the potential for rare earth elements and other critical minerals.