Warrior Met Coal (HCC) versus Its Rivals Critical Review

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

Volatility & Risk

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

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Warrior Met Coal	$1.31 billion	$57.00 million	23.65
Warrior Met Coal Competitors	$4.59 billion	$266.77 million	-21.93

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

Insider & 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 large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Warrior Met Coal and its competitors’ 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	-1,158,604,987,491,368,400.00%	48.69%	-2.27%

Analyst Recommendations

This is a breakdown of recent ratings for Warrior Met Coal and its competitors, 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	6287	22372	31963	1752	2.47

Warrior Met Coal currently has a consensus target price of $102.60, indicating a potential upside of 4.29%. As a group, “Metals & Mining” companies have a potential upside of 31.40%. Given Warrior Met Coal’s competitors higher possible upside, analysts clearly believe Warrior Met Coal has less favorable growth aspects than its competitors.

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 9.3% and pay out 10.6% of their earnings in the form of a dividend. Warrior Met Coal has increased its dividend for 1 consecutive years.

Summary

Warrior Met Coal competitors beat Warrior Met Coal 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.