Analyzing Warrior Met Coal (HCC) and The Competition

Warrior Met Coal (NYSE:HCC) is one of 1,989 public companies in the “Metals & Mining” industry, but how does it compare to its peers? We will compare Warrior Met Coal to similar businesses based on the strength of its earnings, valuation, institutional ownership, analyst recommendations, dividends, profitability and risk.

Dividends

Warrior Met Coal pays an annual dividend of $0.32 per share and has a dividend yield of 0.3%. Warrior Met Coal pays out 7.7% of its earnings in the form of a dividend. As a group, “Metals & Mining” companies pay a dividend yield of 8.5% and pay out 10.6% of their earnings in the form of a dividend. Warrior Met Coal has raised its dividend for 1 consecutive years.

Profitability

This table compares Warrior Met Coal and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Warrior Met Coal	13.05%	10.02%	7.84%
Warrior Met Coal Competitors	-1,155,490,457,955,101,400.00%	-14.33%	-2.08%

Analyst Ratings

This is a breakdown of recent recommendations for Warrior Met Coal and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Warrior Met Coal	0	3	4	0	2.57
Warrior Met Coal Competitors	6319	22426	32039	1763	2.47

Warrior Met Coal currently has a consensus price target of $102.60, suggesting a potential downside of 4.13%. As a group, “Metals & Mining” companies have a potential upside of 15.06%. Given Warrior Met Coal’s peers higher probable upside, analysts clearly believe Warrior Met Coal has less favorable growth aspects than its peers.

Insider and Institutional Ownership

92.3% of Warrior Met Coal shares are owned by institutional investors. Comparatively, 16.1% of shares of all “Metals & Mining” companies are owned by institutional investors. 2.1% of Warrior Met Coal shares are owned by insiders. Comparatively, 17.6% of shares of all “Metals & Mining” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Warrior Met Coal and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Warrior Met Coal	$1.31 billion	$57.00 million	25.73
Warrior Met Coal Competitors	$4.62 billion	$267.17 million	-24.95

Warrior Met Coal’s peers have higher revenue and earnings than Warrior Met Coal. Warrior Met Coal is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Volatility & Risk

Warrior Met Coal has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500. Comparatively, Warrior Met Coal’s peers have a beta of 0.99, suggesting that their average stock price is 1% less volatile than the S&P 500.

Summary

Warrior Met Coal beats its peers on 8 of the 15 factors compared.

Warrior Met Coal Company Profile

Warrior Met Coal, Inc. produces and exports non-thermal metallurgical coal for the steel industry. It operates two underground mines located in Alabama. The company sells its metallurgical coal to a customer base of blast furnace steel producers located primarily in Europe, South America, and Asia. It also sells natural gas, which is extracted as a byproduct from coal production. Warrior Met Coal, Inc. was incorporated in 2015 and is headquartered in Brookwood, Alabama.