Ramaco Resources (NASDAQ:METCB – Get Free Report) and China Shenhua Energy (OTCMKTS:CSUAY – Get Free Report) are both energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, valuation, risk, analyst recommendations and dividends.
Dividends
Ramaco Resources pays an annual dividend of $0.71 per share and has a dividend yield of 5.6%. China Shenhua Energy pays an annual dividend of $1.48 per share and has a dividend yield of 7.0%. Ramaco Resources pays out -104.4% of its earnings in the form of a dividend. China Shenhua Energy pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Profitability
This table compares Ramaco Resources and China Shenhua Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ramaco Resources | -5.67% | -7.52% | -4.31% |
| China Shenhua Energy | 17.88% | 10.72% | 7.98% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ramaco Resources | 1 | 0 | 0 | 0 | 1.00 |
| China Shenhua Energy | 1 | 1 | 0 | 0 | 1.50 |
China Shenhua Energy has a consensus target price of $32.50, suggesting a potential upside of 54.17%. Given China Shenhua Energy’s stronger consensus rating and higher probable upside, analysts plainly believe China Shenhua Energy is more favorable than Ramaco Resources.
Institutional & Insider Ownership
9.6% of Ramaco Resources shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Volatility and Risk
Ramaco Resources has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500. Comparatively, China Shenhua Energy has a beta of 0.24, suggesting that its share price is 76% less volatile than the S&P 500.
Earnings & Valuation
This table compares Ramaco Resources and China Shenhua Energy”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ramaco Resources | $579.50 million | 1.43 | $11.19 million | ($0.68) | -18.49 |
| China Shenhua Energy | $47.07 billion | 2.23 | $8.68 billion | $1.48 | 14.24 |
China Shenhua Energy has higher revenue and earnings than Ramaco Resources. Ramaco Resources is trading at a lower price-to-earnings ratio than China Shenhua Energy, indicating that it is currently the more affordable of the two stocks.
Summary
China Shenhua Energy 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 China Shenhua Energy
China Shenhua Energy Company Limited, together with its subsidiaries, engages in the production and sale of coal and power; railway, port, and shipping transportation; and coal-to-olefins businesses in the People's Republic of China and internationally. It operates through six segments: Coal, Power Generation, Railway, Port, Shipping, and Coal Chemical. The Coal segment produces coal from surface and underground mines; and sells coal to power plants and metallurgical and coal chemical producers. The Power segment generates electric power through thermal, wind, water, and gas; and sells electric power to power grid companies. The Railway segment provides railway transportation services. The Port segment offers loading, transportation, and storage services. The Shipping segment provides shipment transportation services. The Coal Chemical segment produces and sells methanol; and polyethylene and polypropylene, as well as other by-products. The company was incorporated in 2004 and is based in Beijing, the People's Republic of China. China Shenhua Energy Company Limited operates as a subsidiary of China Energy Investment Corporation Limited.
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