Wheaton Precious Metals (NYSE:WPM) versus Ramaco Resources (NASDAQ:METCB) Financial Contrast

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

Profitability

This table compares Wheaton Precious Metals and Ramaco Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Wheaton Precious Metals	64.66%	21.97%	19.83%
Ramaco Resources	-11.98%	-13.54%	-6.01%

Insider & Institutional Ownership

70.3% of Wheaton Precious Metals shares are owned by institutional investors. Comparatively, 9.6% of Ramaco Resources shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Wheaton Precious Metals has a beta of 0.54, meaning that its stock price is 46% less volatile than the S&P 500. Comparatively, Ramaco Resources has a beta of 1.37, meaning that its stock price is 37% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Wheaton Precious Metals and Ramaco Resources, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wheaton Precious Metals	0	1	10	0	2.91
Ramaco Resources	1	0	0	0	1.00

Wheaton Precious Metals presently has a consensus target price of $172.11, indicating a potential upside of 39.39%. Given Wheaton Precious Metals’ stronger consensus rating and higher possible upside, analysts clearly believe Wheaton Precious Metals is more favorable than Ramaco Resources.

Valuation and Earnings

This table compares Wheaton Precious Metals and Ramaco Resources”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wheaton Precious Metals	$2.31 billion	24.23	$1.47 billion	$4.51	27.38
Ramaco Resources	$536.62 million	0.46	-$51.45 million	($1.07)	-3.64

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

Summary

Wheaton Precious Metals beats Ramaco Resources on 11 of the 12 factors compared between the two stocks.

About Wheaton Precious Metals

Wheaton Precious Metals Corp. primarily sells precious metals in North America, Europe, and South America. It produces and sells gold, silver, palladium, and cobalt deposits. The company was formerly known as Silver Wheaton Corp. and changed its name to Wheaton Precious Metals Corp. in May 2017. Wheaton Precious Metals Corp. was founded in 2004 and is headquartered in Vancouver, Canada.

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.