Reviewing American Resources (NASDAQ:AREC) & Paringa Resources (OTCMKTS:PNRLY)

American Resources (NASDAQ:ARECGet Rating) and Paringa Resources (OTCMKTS:PNRLYGet 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 profitability, dividends, institutional ownership, valuation, earnings, analyst recommendations and risk.

Insider and Institutional Ownership

9.5% of American Resources shares are owned by institutional investors. 27.9% of American Resources shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for American Resources and Paringa Resources, as reported by MarketBeat.

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

American Resources presently has a consensus target price of $4.50, indicating a potential upside of 150.00%. Given American Resources’ higher possible upside, analysts clearly believe American Resources is more favorable than Paringa Resources.

Risk & Volatility

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

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
American Resources $7.76 million 15.25 -$32.50 million ($0.60) -3.00
Paringa Resources N/A N/A -$13.10 million N/A N/A

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

Profitability

This table compares American Resources and Paringa Resources’ 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%
Paringa Resources N/A N/A N/A

Summary

American Resources beats Paringa Resources on 5 of the 9 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 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.

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