Comparing HudBay Minerals (NYSE:HBM) & Ramaco Resources (NASDAQ:METCB)

HudBay Minerals (NYSE:HBM) and Ramaco Resources (NASDAQ:METCB) are both materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, valuation, dividends and analyst recommendations.

Earnings & Valuation

This table compares HudBay Minerals and Ramaco Resources”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HudBay Minerals	$2.47 billion	4.86	$568.50 million	$1.70	15.88
Ramaco Resources	$536.62 million	0.53	-$51.45 million	($1.07)	-4.18

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.

Risk & Volatility

HudBay Minerals has a beta of 1.58, indicating that its share price is 58% more volatile than the S&P 500. Comparatively, Ramaco Resources has a beta of 1.37, indicating that its share price is 37% more volatile than the S&P 500.

Insider and Institutional Ownership

57.8% of HudBay Minerals shares are held by institutional investors. Comparatively, 9.6% of Ramaco Resources shares are held by institutional investors. 0.3% of HudBay Minerals shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

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	-11.98%	-13.54%	-6.01%

Analyst Ratings

This is a breakdown of recent ratings and price targets for HudBay Minerals and Ramaco Resources, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HudBay Minerals	0	2	10	0	2.83
Ramaco Resources	1	0	0	0	1.00

HudBay Minerals currently has a consensus target price of $31.33, indicating a potential upside of 16.07%. Given HudBay Minerals’ stronger consensus rating and higher probable upside, equities research analysts clearly believe HudBay Minerals is more favorable than Ramaco Resources.

Summary

HudBay Minerals beats Ramaco Resources on 14 of the 14 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.