Head-To-Head Comparison: Ramaco Resources (NASDAQ:METCB) versus Freeport-McMoRan (NYSE:FCX)

Freeport-McMoRan (NYSE:FCX) 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 risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.

Insider and Institutional Ownership

80.8% of Freeport-McMoRan shares are owned by institutional investors. Comparatively, 9.6% of Ramaco Resources shares are owned by institutional investors. 0.7% of Freeport-McMoRan shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Freeport-McMoRan and Ramaco Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Freeport-McMoRan	11.39%	10.63%	5.69%
Ramaco Resources	-11.98%	-13.54%	-6.01%

Analyst Recommendations

This is a summary of current ratings and target prices for Freeport-McMoRan and Ramaco Resources, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Freeport-McMoRan	0	4	20	1	2.88
Ramaco Resources	1	0	0	0	1.00

Freeport-McMoRan currently has a consensus target price of $73.77, suggesting a potential upside of 1.40%. Given Freeport-McMoRan’s stronger consensus rating and higher probable upside, research analysts plainly believe Freeport-McMoRan is more favorable than Ramaco Resources.

Volatility and Risk

Freeport-McMoRan has a beta of 1.39, indicating that its stock price is 39% more volatile than the S&P 500. Comparatively, Ramaco Resources has a beta of 1.37, indicating that its stock price is 37% more volatile than the S&P 500.

Earnings & Valuation

This table compares Freeport-McMoRan and Ramaco Resources”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Freeport-McMoRan	$25.91 billion	4.03	$2.20 billion	$2.03	35.84
Ramaco Resources	$536.62 million	0.52	-$51.45 million	($1.07)	-4.13

Freeport-McMoRan has higher revenue and earnings than Ramaco Resources. Ramaco Resources is trading at a lower price-to-earnings ratio than Freeport-McMoRan, indicating that it is currently the more affordable of the two stocks.

Summary

Freeport-McMoRan beats Ramaco Resources on 15 of the 15 factors compared between the two stocks.

About Freeport-McMoRan

Freeport-McMoRan Inc. engages in the mining of mineral properties in North America, South America, and Indonesia. It primarily explores for copper, gold, molybdenum, silver, and other metals. The company's assets include the Grasberg minerals district in Indonesia; Morenci, Bagdad, Safford, Sierrita, and Miami in Arizona; Chino and Tyrone in New Mexico; and Henderson and Climax in Colorado, North America, as well as Cerro Verde in Peru and El Abra in Chile. The company was formerly known as Freeport-McMoRan Copper & Gold Inc. and changed its name to Freeport-McMoRan Inc. in July 2014. Freeport-McMoRan Inc. was incorporated in 1987 and is headquartered in Phoenix, Arizona.

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.