Financial Comparison: Warrior Met Coal (NYSE:HCC) versus American Resources (NASDAQ:AREC)

American Resources (NASDAQ:ARECGet Rating) and Warrior Met Coal (NYSE:HCCGet Rating) are both small-cap basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, dividends, analyst recommendations, risk and valuation.

Profitability

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

Net Margins Return on Equity Return on Assets
American Resources -417.68% N/A -67.86%
Warrior Met Coal 14.24% 30.60% 16.62%

Volatility & Risk

American Resources has a beta of -0.28, indicating that its stock price is 128% less volatile than the S&P 500. Comparatively, Warrior Met Coal has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.

Valuation & Earnings

This table compares American Resources and Warrior Met Coal’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
American Resources $7.76 million 16.10 -$32.50 million ($0.60) -3.17
Warrior Met Coal $1.06 billion 1.61 $150.88 million $2.91 11.35

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

Insider & Institutional Ownership

8.3% of American Resources shares are owned by institutional investors. Comparatively, 84.9% of Warrior Met Coal shares are owned by institutional investors. 27.9% of American Resources shares are owned by insiders. Comparatively, 1.0% of Warrior Met Coal shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and target prices for American Resources and Warrior Met Coal, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Resources 0 0 1 0 3.00
Warrior Met Coal 0 4 1 0 2.20

American Resources currently has a consensus price target of $4.50, indicating a potential upside of 136.84%. Warrior Met Coal has a consensus price target of $31.50, indicating a potential downside of 4.63%. Given American Resources’ stronger consensus rating and higher possible upside, equities research analysts clearly believe American Resources is more favorable than Warrior Met Coal.

Summary

Warrior Met Coal beats American Resources on 8 of the 12 factors compared between the two stocks.

About American Resources (Get Rating)

American Resources Corporation engages in the extraction, processing, transportation, distribution, and sale of metallurgical coal to the steel industries. The company supplies raw materials; and sells coal used in pulverized coal injections. It has a portfolio of operations located in the Pike, Knott, and Letcher Counties in Kentucky; and Wyoming County, West Virginia. American Resources Corporation was founded in 2006 and is headquartered in Fishers, Indiana.

About Warrior Met Coal (Get Rating)

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.

Receive News & Ratings for American Resources Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for American Resources and related companies with MarketBeat.com's FREE daily email newsletter.