Ramaco Resources (NASDAQ:METC – Get Free Report) and Alamos Gold (NYSE:AGI – Get Free Report) are both materials companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, risk and dividends.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Ramaco Resources and Alamos Gold, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ramaco Resources | 2 | 3 | 3 | 0 | 2.12 |
| Alamos Gold | 1 | 0 | 8 | 0 | 2.78 |
Ramaco Resources currently has a consensus target price of $22.43, indicating a potential upside of 168.77%. Alamos Gold has a consensus target price of $47.50, indicating a potential upside of 55.44%. Given Ramaco Resources’ higher probable upside, analysts plainly believe Ramaco Resources is more favorable than Alamos Gold.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ramaco Resources | $536.62 million | 0.99 | -$51.45 million | ($1.07) | -7.80 |
| Alamos Gold | $1.81 billion | 7.07 | $885.80 million | $2.77 | 11.03 |
Alamos Gold has higher revenue and earnings than Ramaco Resources. Ramaco Resources is trading at a lower price-to-earnings ratio than Alamos Gold, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Ramaco Resources and Alamos Gold’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% |
| Alamos Gold | 52.64% | 19.28% | 13.47% |
Volatility & Risk
Ramaco Resources has a beta of 1.64, suggesting that its share price is 64% more volatile than the S&P 500. Comparatively, Alamos Gold has a beta of 0.59, suggesting that its share price is 41% less volatile than the S&P 500.
Institutional & Insider Ownership
74.5% of Ramaco Resources shares are held by institutional investors. Comparatively, 64.3% of Alamos Gold shares are held by institutional investors. 46.1% of Ramaco Resources shares are held by insiders. Comparatively, 0.5% of Alamos Gold shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Summary
Alamos Gold 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 Alamos Gold
Alamos Gold Inc. engages in the acquisition, exploration, development, and extraction of precious metals in Canada and Mexico. The company primarily explores for gold deposits. It holds 100% interest in the Young-Davidson mine and Island Gold mine located in the Ontario, Canada; Mulatos mine located in the Sonora, Mexico; and Lynn Lake project situated in the Manitoba, Canada. The company also holds interest in the Quartz Mountain project located in the Oregon United states. Alamos Gold Inc. was founded in 2003 and is based in Toronto, Canada.
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