L&L Energy (OTCMKTS:LLEN) and Ramaco Resources (NASDAQ:METC) are both small-cap oils/energy companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, risk, analyst recommendations and valuation.
Risk and Volatility
L&L Energy has a beta of 2.88, suggesting that its share price is 188% more volatile than the S&P 500. Comparatively, Ramaco Resources has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500.
This is a summary of current ratings and target prices for L&L Energy and Ramaco Resources, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Ramaco Resources has a consensus target price of $10.00, suggesting a potential upside of 88.68%. Given Ramaco Resources’ higher probable upside, analysts clearly believe Ramaco Resources is more favorable than L&L Energy.
Institutional & Insider Ownership
0.1% of L&L Energy shares are owned by institutional investors. Comparatively, 84.5% of Ramaco Resources shares are owned by institutional investors. 18.8% of L&L Energy shares are owned by company insiders. Comparatively, 85.2% of Ramaco Resources shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares L&L Energy and Ramaco Resources’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ramaco Resources||$61.04 million||3.48||-$15.41 million||($0.41)||-12.93|
L&L Energy has higher earnings, but lower revenue than Ramaco Resources.
This table compares L&L Energy and Ramaco Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Ramaco Resources beats L&L Energy on 8 of the 9 factors compared between the two stocks.
About L&L Energy
L&L Energy, Inc., through its subsidiaries, engages in production, processing, and sale of coal in the People's Republic of China. The company operates in three segments: Coal Mining, Coal Wholesaling, and Coking Coal. It has the right to extract coal from five mines, including the DaPuAn mine and the SuTsong mine in Yunnan Province; and the WeiShe mine, LaShu mine, and LuoZhou mine in Guizhou Province in China. The company also operates two coal washing plants and three coal wholesale and distribution network in the southwest region of China. It serves customers in steel and electrical/utility industries. L&L Energy, Inc. was founded in 1995 and is headquartered in Seattle, Washington.
About Ramaco Resources
Ramaco Resources, Inc. produces and sells metallurgical coal in the United States. The company's development portfolio includes the Elk Creek project consisting of approximately 18,728 acres of controlled mineral and 24 seams located in southern West Virginia; and the Berwind coal property comprising approximately 31,200 acres of controlled mineral and an area of Squire Jim seam coal deposits, which is situated on the border of West Virginia and Virginia. Its development portfolio also comprises Knox Creek property consisting of approximately 61,343 acres of controlled mineral that is located in Virginia; and RAM Mine property comprising approximately 1,567 acres of controlled mineral, which is situated in southwestern Pennsylvania. The company was founded in 2015 and is headquartered in Lexington, Kentucky.
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