Critical Survey: Warrior Met Coal (HCC) vs. New Wei (WLTGQ)

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Warrior Met Coal (NYSE:HCC) and New Wei (OTCMKTS:WLTGQ) are both oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, risk, dividends and profitability.

Insider and Institutional Ownership

0.0% of New Wei shares are owned by institutional investors. 0.5% of Warrior Met Coal shares are owned by insiders. Comparatively, 1.3% of New Wei 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.

Dividends

Warrior Met Coal pays an annual dividend of $0.20 per share and has a dividend yield of 0.7%. New Wei does not pay a dividend. Warrior Met Coal pays out 2.5% of its earnings in the form of a dividend. Warrior Met Coal has raised its dividend for 11 consecutive years.

Valuation & Earnings

This table compares Warrior Met Coal and New Wei’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Warrior Met Coal $1.17 billion 1.26 $455.04 million $7.89 3.55
New Wei N/A N/A N/A N/A N/A

Warrior Met Coal has higher revenue and earnings than New Wei.

Risk & Volatility

Warrior Met Coal has a beta of 0.5, suggesting that its share price is 50% less volatile than the S&P 500. Comparatively, New Wei has a beta of 57.24, suggesting that its share price is 5,624% more volatile than the S&P 500.

Profitability

This table compares Warrior Met Coal and New Wei’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Warrior Met Coal 37.56% 82.44% 41.30%
New Wei N/A N/A N/A

Analyst Ratings

This is a breakdown of current ratings for Warrior Met Coal and New Wei, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Warrior Met Coal 0 4 3 0 2.43
New Wei 0 0 0 0 N/A

Warrior Met Coal presently has a consensus price target of $31.00, indicating a potential upside of 10.71%. Given Warrior Met Coal’s higher probable upside, equities research analysts clearly believe Warrior Met Coal is more favorable than New Wei.

Summary

Warrior Met Coal beats New Wei on 8 of the 12 factors compared between the two stocks.

Warrior Met Coal Company Profile

Warrior Met Coal, Inc. produces and exports 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 founded in 2015 and is headquartered in Brookwood, Alabama.

New Wei Company Profile

Walter Energy, Inc. is a producer and exporter of metallurgical coal for the global steel industry. It also produces thermal coal, anthracite, metallurgical coke and coal bed methane gas and other related products. The company operates through following reportable segments: U.S. Operations, Canadian and U.K. Operations, and Other. The U.S. Operations segment includes hard coking coal and thermal coal mines in both Alabama and West Virginia, a coke plant in Alabama, and coal bed methane extraction operations also located in Alabama. The Alabama operations consist of two underground hard coking coal mines in Southern Appalachia’s Blue Creek coal seam, one underground thermal coal mine, one surface hard coking coal mine and two surface hard coking and thermal coal mines. The West Virginia operations acquired four mines on two properties in West Virginia through the acquisition of Western Coal. The Mines on these properties produce both hard coking and thermal coal. The two properties are the Gauley Eagle and Maple properties and each has an underground mine and surface mine. The Canadian mining operations segment currently operate three surface metallurgical coal mines in Northeast British Columbia’s coalfields. Within British Columbia, the company holds the right to two large multi-deposit coal property groups: the Wolverine group, including the Perry Creek, EB and Hermann deposits; and the Brazion group, including the Brule Mine and the Willow Creek Mine and less explored portions of these properties and adjacent properties. The U.K. mining operation segment consists of an underground and surface mine located in South Wales. Walter Energy was founded by James Willis Walter in 1946 and is headquartered in Birmingham, AL.

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