Ramaco Resources (NASDAQ:METC – Get Free Report) and Natural Resource Partners (NYSE:NRP – Get Free Report) are both energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, analyst recommendations and earnings.
Dividends
Ramaco Resources pays an annual dividend of $0.28 per share and has a dividend yield of 0.7%. Natural Resource Partners pays an annual dividend of $3.00 per share and has a dividend yield of 2.8%. Ramaco Resources pays out -62.2% of its earnings in the form of a dividend. Natural Resource Partners pays out 28.2% 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.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Ramaco Resources and Natural Resource Partners, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ramaco Resources | 0 | 2 | 3 | 0 | 2.60 |
| Natural Resource Partners | 0 | 0 | 1 | 0 | 3.00 |
Insider and Institutional Ownership
74.5% of Ramaco Resources shares are held by institutional investors. Comparatively, 31.8% of Natural Resource Partners shares are held by institutional investors. 36.2% of Ramaco Resources shares are held by company insiders. Comparatively, 35.3% of Natural Resource Partners shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Risk & Volatility
Ramaco Resources has a beta of 1.37, indicating that its share price is 37% more volatile than the S&P 500. Comparatively, Natural Resource Partners has a beta of 0.29, indicating that its share price is 71% less volatile than the S&P 500.
Earnings and Valuation
This table compares Ramaco Resources and Natural Resource Partners”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 | 3.44 | $11.19 million | ($0.45) | -92.20 |
| Natural Resource Partners | $268.01 million | 5.23 | $183.64 million | $10.64 | 10.16 |
Natural Resource Partners has lower revenue, but higher earnings than Ramaco Resources. Ramaco Resources is trading at a lower price-to-earnings ratio than Natural Resource Partners, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Ramaco Resources and Natural Resource Partners’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ramaco Resources | -3.17% | -5.55% | -2.96% |
| Natural Resource Partners | 65.19% | 27.76% | 19.93% |
Summary
Natural Resource Partners beats Ramaco Resources on 9 of the 16 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 Natural Resource Partners
Natural Resource Partners L.P., together with its subsidiaries, owns, manages, and leases a portfolio of mineral properties in the United States. It operates in two segments, Mineral Rights and Soda Ash. The company owns interests in coal, soda ash, trona, and other natural resources. Its coal reserves are primarily located in the Appalachia Basin, the Illinois Basin, and the Northern Powder River Basin in the United States; industrial minerals and aggregates properties located in the United States; and oil and gas properties located in Louisiana. The company leases a portion of its reserves in exchange for royalty payments; and owns and leases transportation and processing infrastructure related to coal properties. NRP (GP) LP serves as the general partner of the company. Natural Resource Partners L.P. was incorporated in 2002 and is headquartered in Houston, Texas.
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