Ramaco Resources (NASDAQ:METC – Get Free Report) and Ferroglobe (NASDAQ:GSM – Get Free Report) are both small-cap materials companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, earnings, dividends and institutional ownership.
Dividends
Ramaco Resources pays an annual dividend of $0.06 per share and has a dividend yield of 0.7%. Ferroglobe pays an annual dividend of $0.06 per share and has a dividend yield of 1.4%. Ramaco Resources pays out -5.6% of its earnings in the form of a dividend. Ferroglobe pays out -27.3% 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. Ferroglobe has increased its dividend for 1 consecutive years. Ferroglobe is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Volatility and Risk
Ramaco Resources has a beta of 1.64, suggesting that its share price is 64% more volatile than the S&P 500. Comparatively, Ferroglobe has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ramaco Resources | $515.41 million | 1.04 | -$51.45 million | ($1.07) | -7.93 |
| Ferroglobe | $1.34 billion | 0.59 | -$170.70 million | ($0.22) | -19.05 |
Ramaco Resources has higher earnings, but lower revenue than Ferroglobe. Ferroglobe is trading at a lower price-to-earnings ratio than Ramaco Resources, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Ramaco Resources and Ferroglobe’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% |
| Ferroglobe | -2.96% | -3.73% | -1.78% |
Insider & Institutional Ownership
74.5% of Ramaco Resources shares are owned by institutional investors. Comparatively, 89.6% of Ferroglobe shares are owned by institutional investors. 46.1% of Ramaco Resources shares are owned by company insiders. Comparatively, 13.1% of Ferroglobe shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of current recommendations for Ramaco Resources and Ferroglobe, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ramaco Resources | 2 | 3 | 3 | 0 | 2.12 |
| Ferroglobe | 1 | 1 | 1 | 0 | 2.00 |
Ramaco Resources currently has a consensus price target of $22.43, suggesting a potential upside of 164.18%. Ferroglobe has a consensus price target of $6.00, suggesting a potential upside of 43.20%. Given Ramaco Resources’ stronger consensus rating and higher probable upside, research analysts clearly believe Ramaco Resources is more favorable than Ferroglobe.
Summary
Ferroglobe beats Ramaco Resources on 9 of the 17 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 Ferroglobe
Ferroglobe PLC produces and sells silicon metal, and silicon and manganese-based ferroalloys in the United States, Europe, and internationally. It provides silicone chemicals that are used in a range of applications, including personal care items, construction-related products, health care products, and electronics; and silicon metal for primary and secondary aluminum producers. The company also offers silicomanganese, which is used as deoxidizing agent in the steel manufacturing process; and ferromanganese that is used as a deoxidizing, desulphurizing, and degassing agent in the removal of nitrogen and other harmful elements from steel. In addition, it offers ferrosilicon products that are used to produce stainless steel, carbon steel, and various other steel alloys, as well as to manufacture electrodes and aluminum; calcium silicon, which is used in the deoxidation and desulfurization of liquid steel, and production of coatings for cast iron pipes, as well as in the welding process of powder metal and in pyrotechnics; and nodularizers and inoculants, which are used in the production of iron. Further, the company provides silica fume, a by-product of the electrometallurgical process of silicon metal and ferrosilicon. Additionally, it operates quartz mines in South Africa, Spain, the United States, and Canada; and low-ash metallurgical coal mines in the United States; and a charcoal production facility in South Africa, as well as holds interests in hydroelectric power plant in France. The company serves silicone chemical producers; aluminum and steel manufacturers; auto companies and their suppliers; ductile iron foundries; manufacturers of photovoltaic solar cells and computer chips; and concrete producers. Ferroglobe PLC was formerly known as VeloNewco Limited and changed its name to Ferroglobe PLC in December 2015. The company was incorporated in 2015 and is headquartered in London, the United Kingdom.
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