Ramaco Resources (NASDAQ:METCB) versus NACCO Industries (NYSE:NC) Critical Review

Risk & Volatility

Ramaco Resources has a beta of 0.69, indicating that its share price is 31% less volatile than the S&P 500. Comparatively, NACCO Industries has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500.

Dividends

Ramaco Resources pays an annual dividend of $0.72 per share and has a dividend yield of 9.7%. NACCO Industries pays an annual dividend of $1.01 per share and has a dividend yield of 2.6%. Ramaco Resources pays out -800.0% of its earnings in the form of a dividend. NACCO Industries pays out 21.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. NACCO Industries has raised its dividend for 1 consecutive years. Ramaco Resources is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

9.6% of Ramaco Resources shares are held by institutional investors. Comparatively, 49.1% of NACCO Industries shares are held by institutional investors. 43.0% of NACCO Industries shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Ramaco Resources and NACCO Industries”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ramaco Resources	$666.29 million	0.61	-$4.92 million	($0.09)	-82.78
NACCO Industries	$237.71 million	1.22	$33.74 million	$4.63	8.45

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

Profitability

This table compares Ramaco Resources and NACCO Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ramaco Resources	N/A	N/A	N/A
NACCO Industries	13.63%	8.54%	5.62%

Summary

NACCO Industries beats Ramaco Resources on 10 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 NACCO Industries

NACCO Industries, Inc., together with its subsidiaries, engages in the natural resources business. The company operates through three segments: Coal Mining, North American Mining, and Minerals Management. The Coal Mining segment operates surface coal mines under long-term contracts with power generation companies. Coal is surface mined in North Dakota and Mississippi. The North American Mining segment provides value-added contract mining and other services for producers of aggregates, activated carbon, lithium, and other industrial minerals; and contract mining services for independently owned mines and quarries in Florida, Texas, Arkansas, Virginia, and Nebraska. This segment also offers mining design and consulting services. The Minerals Management segment is involved in the leasing of its royalty and mineral interests to third-party exploration and production companies, and other mining companies, which grants them the rights to explore, develop, mine, produce, market, and sell gas, oil, and coal. NACCO Industries, Inc. was founded in 1913 and is headquartered in Cleveland, Ohio.