Reviewing ArcelorMittal (NYSE:MT) and Ramaco Resources (NASDAQ:METCB)

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ramaco Resources	$536.62 million	0.47	-$51.45 million	($1.07)	-3.75
ArcelorMittal	$62.85 billion	0.78	$3.15 billion	$2.36	26.64

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Ramaco Resources and ArcelorMittal, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ramaco Resources	1	0	0	0	1.00
ArcelorMittal	0	7	8	0	2.53

ArcelorMittal has a consensus price target of $74.55, indicating a potential upside of 18.56%. Given ArcelorMittal’s stronger consensus rating and higher probable upside, analysts clearly believe ArcelorMittal is more favorable than Ramaco Resources.

Risk & Volatility

Ramaco Resources has a beta of 1.37, suggesting that its stock price is 37% more volatile than the S&P 500. Comparatively, ArcelorMittal has a beta of 1.54, suggesting that its stock price is 54% more volatile than the S&P 500.

Insider & Institutional Ownership

9.6% of Ramaco Resources shares are held by institutional investors. Comparatively, 9.3% of ArcelorMittal shares are held by institutional investors. 0.1% of ArcelorMittal shares are held by company 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.

Profitability

This table compares Ramaco Resources and ArcelorMittal’s 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%
ArcelorMittal	2.88%	4.20%	2.42%

Summary

ArcelorMittal beats Ramaco Resources on 13 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 ArcelorMittal

ArcelorMittal S.A., together with its subsidiaries, operates as integrated steel and mining companies in the United States, Europe, and internationally. It offers semi-finished flat products, including slabs; finished flat products comprising plates, hot- and cold-rolled coils and sheets, hot-dipped and electro-galvanized coils and sheets, tinplate, and color coated coils and sheets; semi-finished long products, such as blooms and billets; finished long products consisting of bars, wire-rods, structural sections, rails, sheet piles, and wire-products; and seamless and welded pipes and tubes. The company also provides mining products, such as iron ore lumps, fines, concentrates, pellets, and sinter feeds; and coking coal. It sells its products to various customers in the automotive, appliance, engineering, construction, energy, and machinery industries through a centralized marketing organization, as well as distributors. The company has iron ore mining activities in Brazil, Bosnia, Canada, Liberia, Mexico, South Africa, and Ukraine. ArcelorMittal S.A. was founded in 1976 and is headquartered in Luxembourg City, Luxembourg.