Financial Review: Paringa Resources (OTCMKTS:PNRLY) & American Resources (NASDAQ:AREC)

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

Profitability

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

Net Margins Return on Equity Return on Assets
Paringa Resources N/A N/A N/A
American Resources -417.68% N/A -67.86%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Paringa Resources and American Resources, as provided by MarketBeat.com.

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

American Resources has a consensus price target of $4.50, suggesting a potential upside of 148.62%. Given American Resources’ higher probable upside, analysts clearly believe American Resources is more favorable than Paringa Resources.

Institutional & Insider Ownership

8.3% of American Resources shares are held by institutional investors. 27.9% of American Resources shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk and Volatility

Paringa Resources has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500. Comparatively, American Resources has a beta of -0.28, suggesting that its stock price is 128% less volatile than the S&P 500.

Earnings and Valuation

This table compares Paringa Resources and American Resources’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Paringa Resources N/A N/A -$13.10 million N/A N/A
American Resources $7.76 million 15.33 -$32.50 million ($0.60) -3.02

Paringa Resources has higher earnings, but lower revenue than American Resources.

Summary

American Resources beats Paringa Resources on 5 of the 9 factors compared between the two stocks.

About Paringa Resources (Get Rating)

Paringa Resources Ltd. is an exploration company, which engages in the acquisition, exploration, and development mineral properties. It holds interest on Buck Creek Mine Complex, which consists of Poplar Grove and Cypress Mines. The company was founded by David Chapman on February 27, 2012 and is headquartered in New York, NY.

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.

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