Ramaco Resources (NASDAQ:METCB – Get Free Report) and Ferroglobe (NASDAQ:GSM – Get Free Report) are both small-cap materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, profitability, dividends, institutional ownership, risk and earnings.
Risk and Volatility
Ramaco Resources has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500. Comparatively, Ferroglobe has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.
Earnings and Valuation
This table compares Ramaco Resources and Ferroglobe”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ramaco Resources | $536.62 million | 0.51 | -$51.45 million | ($1.07) | -4.06 |
| Ferroglobe | $1.34 billion | 0.56 | -$170.70 million | ($0.22) | -18.14 |
Ramaco Resources has higher earnings, but lower revenue than Ferroglobe. Ferroglobe is trading at a lower price-to-earnings ratio than Ramaco Resources, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
9.6% of Ramaco Resources shares are owned by institutional investors. Comparatively, 89.6% of Ferroglobe shares are owned by institutional investors. 13.1% of Ferroglobe shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of current recommendations and price targets for Ramaco Resources and Ferroglobe, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ramaco Resources | 1 | 0 | 0 | 0 | 1.00 |
| Ferroglobe | 1 | 1 | 1 | 0 | 2.00 |
Ferroglobe has a consensus target price of $6.00, suggesting a potential upside of 50.38%. Given Ferroglobe’s stronger consensus rating and higher probable upside, analysts clearly believe Ferroglobe is more favorable than Ramaco Resources.
Profitability
This table compares Ramaco Resources and Ferroglobe’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% |
| Ferroglobe | -2.96% | -3.73% | -1.78% |
Summary
Ferroglobe beats Ramaco Resources on 11 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 Ferroglobe
Ferroglobe PLC produces and sells silicon metal, and silicon and manganese-based ferroalloys in the United States, Europe, and internationally. It provides silicone chemicals that are used in a range of applications, including personal care items, construction-related products, health care products, and electronics; and silicon metal for primary and secondary aluminum producers. The company also offers silicomanganese, which is used as deoxidizing agent in the steel manufacturing process; and ferromanganese that is used as a deoxidizing, desulphurizing, and degassing agent in the removal of nitrogen and other harmful elements from steel. In addition, it offers ferrosilicon products that are used to produce stainless steel, carbon steel, and various other steel alloys, as well as to manufacture electrodes and aluminum; calcium silicon, which is used in the deoxidation and desulfurization of liquid steel, and production of coatings for cast iron pipes, as well as in the welding process of powder metal and in pyrotechnics; and nodularizers and inoculants, which are used in the production of iron. Further, the company provides silica fume, a by-product of the electrometallurgical process of silicon metal and ferrosilicon. Additionally, it operates quartz mines in South Africa, Spain, the United States, and Canada; and low-ash metallurgical coal mines in the United States; and a charcoal production facility in South Africa, as well as holds interests in hydroelectric power plant in France. The company serves silicone chemical producers; aluminum and steel manufacturers; auto companies and their suppliers; ductile iron foundries; manufacturers of photovoltaic solar cells and computer chips; and concrete producers. Ferroglobe PLC was formerly known as VeloNewco Limited and changed its name to Ferroglobe PLC in December 2015. The company was incorporated in 2015 and is headquartered in London, the United Kingdom.
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