HudBay Minerals (NYSE:HBM – Get Free Report) and Ramaco Resources (NASDAQ:METC – Get Free Report) are both materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, institutional ownership, profitability, dividends, analyst recommendations and valuation.
Volatility and Risk
HudBay Minerals has a beta of 1.62, indicating that its stock price is 62% more volatile than the S&P 500. Comparatively, Ramaco Resources has a beta of 1.46, indicating that its stock price is 46% more volatile than the S&P 500.
Insider & Institutional Ownership
57.8% of HudBay Minerals shares are held by institutional investors. Comparatively, 74.5% of Ramaco Resources shares are held by institutional investors. 0.3% of HudBay Minerals shares are held by company insiders. Comparatively, 46.1% of Ramaco Resources shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares HudBay Minerals and Ramaco Resources”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| HudBay Minerals | $2.21 billion | 4.19 | $568.50 million | $1.70 | 12.27 |
| Ramaco Resources | $544.51 million | 0.73 | -$51.45 million | ($1.14) | -5.47 |
HudBay Minerals has higher revenue and earnings than Ramaco Resources. Ramaco Resources is trading at a lower price-to-earnings ratio than HudBay Minerals, indicating that it is currently the more affordable of the two stocks.
Dividends
HudBay Minerals pays an annual dividend of $0.03 per share and has a dividend yield of 0.1%. Ramaco Resources pays an annual dividend of $0.06 per share and has a dividend yield of 1.0%. HudBay Minerals pays out 1.8% of its earnings in the form of a dividend. Ramaco Resources pays out -5.3% 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. Ramaco Resources is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares HudBay Minerals and Ramaco Resources’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| HudBay Minerals | 27.48% | 9.47% | 5.44% |
| Ramaco Resources | -12.24% | -16.07% | -6.26% |
Analyst Recommendations
This is a summary of recent ratings and target prices for HudBay Minerals and Ramaco Resources, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| HudBay Minerals | 0 | 2 | 10 | 0 | 2.83 |
| Ramaco Resources | 1 | 4 | 3 | 0 | 2.25 |
HudBay Minerals currently has a consensus target price of $31.33, suggesting a potential upside of 50.16%. Ramaco Resources has a consensus target price of $17.33, suggesting a potential upside of 177.78%. Given Ramaco Resources’ higher possible upside, analysts clearly believe Ramaco Resources is more favorable than HudBay Minerals.
Summary
HudBay Minerals beats Ramaco Resources on 11 of the 16 factors compared between the two stocks.
About HudBay Minerals
Hudbay Minerals Inc., a diversified mining company, focuses on the exploration, development, operation, and optimization of properties in North and South America. It produces copper concentrates containing gold, silver, and molybdenum; gold concentrates containing zinc; zinc concentrates; molybdenum concentrates; and silver/gold doré. The company's flagship project is the 100% owned Constancia mine located in the Province of Chumbivilcas in southern Peru. Hudbay Minerals Inc. was founded in 1927 and is based in Toronto, 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.
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