Head to Head Survey: Warrior Met Coal (NYSE:HCC) vs. NACCO Industries (NYSE:NC)

Warrior Met Coal (NYSE:HCC) and NACCO Industries (NYSE:NC) are both energy companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, earnings, analyst recommendations, risk and profitability.

Volatility & Risk

Warrior Met Coal has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500. Comparatively, NACCO Industries has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Warrior Met Coal and NACCO Industries, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Warrior Met Coal	0	3	2	0	2.40
NACCO Industries	0	0	0	0	0.00

Warrior Met Coal presently has a consensus target price of $63.50, suggesting a potential upside of 5.46%. Given Warrior Met Coal’s stronger consensus rating and higher probable upside, equities analysts plainly believe Warrior Met Coal is more favorable than NACCO Industries.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Warrior Met Coal	3.30%	2.26%	1.81%
NACCO Industries	11.79%	7.72%	5.03%

Dividends

Warrior Met Coal pays an annual dividend of $0.32 per share and has a dividend yield of 0.5%. NACCO Industries pays an annual dividend of $1.01 per share and has a dividend yield of 2.7%. Warrior Met Coal pays out 41.6% of its earnings in the form of a dividend. NACCO Industries pays out 23.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Warrior Met Coal has raised its dividend for 1 consecutive years and NACCO Industries has raised its dividend for 1 consecutive years. NACCO Industries is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares Warrior Met Coal and NACCO Industries”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Warrior Met Coal	$1.53 billion	2.08	$250.60 million	$0.77	78.19
NACCO Industries	$237.71 million	1.19	$33.74 million	$4.26	8.89

Warrior Met Coal has higher revenue and earnings than NACCO Industries. NACCO Industries is trading at a lower price-to-earnings ratio than Warrior Met Coal, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

92.3% of Warrior Met Coal shares are owned by institutional investors. Comparatively, 49.1% of NACCO Industries shares are owned by institutional investors. 2.1% of Warrior Met Coal shares are owned by insiders. Comparatively, 43.0% of NACCO Industries shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

About Warrior Met Coal

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.

About NACCO Industries

NACCO Industries, Inc., together with its subsidiaries, engages in the natural resources business. The company operates through three segments: Coal Mining, North American Mining, and Minerals Management. The Coal Mining segment operates surface coal mines under long-term contracts with power generation companies. Coal is surface mined in North Dakota and Mississippi. The North American Mining segment provides value-added contract mining and other services for producers of aggregates, activated carbon, lithium, and other industrial minerals; and contract mining services for independently owned mines and quarries in Florida, Texas, Arkansas, Virginia, and Nebraska. This segment also offers mining design and consulting services. The Minerals Management segment is involved in the leasing of its royalty and mineral interests to third-party exploration and production companies, and other mining companies, which grants them the rights to explore, develop, mine, produce, market, and sell gas, oil, and coal. NACCO Industries, Inc. was founded in 1913 and is headquartered in Cleveland, Ohio.