American Resources (NASDAQ:AREC) vs. Hallador Energy (NASDAQ:HNRG) Critical Contrast

Hallador Energy (NASDAQ:HNRGGet Rating) and American Resources (NASDAQ:ARECGet Rating) are both small-cap oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, dividends, earnings, profitability, valuation, institutional ownership and risk.

Analyst Recommendations

This is a summary of current ratings for Hallador Energy and American Resources, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hallador Energy 0 0 0 0 N/A
American Resources 0 0 1 0 3.00

American Resources has a consensus target price of $4.50, suggesting a potential upside of 93.13%. Given American Resources’ higher possible upside, analysts plainly believe American Resources is more favorable than Hallador Energy.

Profitability

This table compares Hallador Energy and American Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hallador Energy -1.52% -6.31% -3.15%
American Resources -417.68% N/A -67.86%

Risk and Volatility

Hallador Energy has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500. Comparatively, American Resources has a beta of -0.28, meaning that its share price is 128% less volatile than the S&P 500.

Earnings & Valuation

This table compares Hallador Energy and American Resources’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hallador Energy $247.67 million 0.65 -$3.75 million ($0.12) -43.50
American Resources $7.76 million 19.74 -$32.50 million ($0.60) -3.88

Hallador Energy has higher revenue and earnings than American Resources. Hallador Energy is trading at a lower price-to-earnings ratio than American Resources, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

23.7% of Hallador Energy shares are owned by institutional investors. Comparatively, 8.3% of American Resources shares are owned by institutional investors. 30.4% of Hallador Energy shares are owned by insiders. Comparatively, 27.9% of American Resources shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Hallador Energy beats American Resources on 8 of the 13 factors compared between the two stocks.

About Hallador Energy (Get Rating)

Hallador Energy Co. engages in business through its subsidiary, Sunrise Coal, LLC, which produces coal in the Illinois Basin for the electric power generation industry. It also owns summit terminal, a transport facility on the Ohio River. The company was founded by David C. Hardie in 1951 and is headquartered in Terre Haute, IN.

About American Resources (Get Rating)

American Resources Corp. engages in the extraction, processing, transportation, and distribution of metallurgical coal to the steel industry. It focuses on the operation of coal mining complexes located primarily within Pike, Knott, and Letcher Counties, Kentucky, and Wyoming County, West Virginia. The company was founded in 2006 and in headquartered in Fishers, IN.

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