Ramaco Resources (NASDAQ:METCB – Get Free Report) and Franco-Nevada (NYSE:FNV – Get Free Report) are both materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.
Valuation and Earnings
This table compares Ramaco Resources and Franco-Nevada”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ramaco Resources | $536.62 million | 0.45 | -$51.45 million | ($1.07) | -3.60 |
| Franco-Nevada | $2.32 billion | 19.05 | $1.11 billion | $7.65 | 29.91 |
Profitability
This table compares Ramaco Resources and Franco-Nevada’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% |
| Franco-Nevada | 63.79% | 18.58% | 17.19% |
Insider and Institutional Ownership
9.6% of Ramaco Resources shares are held by institutional investors. Comparatively, 77.1% of Franco-Nevada shares are held by institutional investors. 0.7% of Franco-Nevada shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Risk and Volatility
Ramaco Resources has a beta of 1.37, suggesting that its stock price is 37% more volatile than the S&P 500. Comparatively, Franco-Nevada has a beta of 0.36, suggesting that its stock price is 64% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Ramaco Resources and Franco-Nevada, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ramaco Resources | 1 | 0 | 0 | 0 | 1.00 |
| Franco-Nevada | 0 | 5 | 9 | 0 | 2.64 |
Franco-Nevada has a consensus target price of $267.80, suggesting a potential upside of 17.06%. Given Franco-Nevada’s stronger consensus rating and higher probable upside, analysts plainly believe Franco-Nevada is more favorable than Ramaco Resources.
Summary
Franco-Nevada beats Ramaco Resources on 13 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 Franco-Nevada
Franco-Nevada Corporation operates as a gold-focused royalty and streaming company in South America, Central America, Mexico, the United States, Canada, and internationally. It operates through Mining and Energy segments. The company manages its portfolio with a focus on precious metals, such as gold, silver, and platinum group metals; and engages in the sale of crude oil, natural gas, and natural gas liquids through a third-party marketing agent. Franco-Nevada Corporation was founded in 1986 and is headquartered in Toronto, Canada.
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