CONSOL Energy (NYSE:CEIX) & American Resources (NASDAQ:AREC) Critical Analysis

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

Volatility & Risk

CONSOL Energy has a beta of 2.03, indicating that its stock price is 103% more volatile than the S&P 500. Comparatively, American Resources has a beta of 0.07, indicating that its stock price is 93% less volatile than the S&P 500.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CONSOL Energy $1.26 billion 1.35 $34.11 million ($0.01) -4,874.00
American Resources $7.76 million 11.39 -$32.50 million ($0.60) -2.24

CONSOL Energy has higher revenue and earnings than American Resources. CONSOL 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.

Analyst Recommendations

This is a summary of recent recommendations for CONSOL Energy and American Resources, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CONSOL Energy 0 0 1 0 3.00
American Resources 0 0 1 0 3.00

CONSOL Energy currently has a consensus target price of $63.00, suggesting a potential upside of 29.26%. American Resources has a consensus target price of $4.50, suggesting a potential upside of 234.57%. Given American Resources’ higher probable upside, analysts clearly believe American Resources is more favorable than CONSOL Energy.

Profitability

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

Net Margins Return on Equity Return on Assets
CONSOL Energy 0.26% 20.76% 4.81%
American Resources -417.68% N/A -67.86%

Institutional and Insider Ownership

74.5% of CONSOL Energy shares are held by institutional investors. Comparatively, 9.5% of American Resources shares are held by institutional investors. 2.2% of CONSOL Energy shares are held by insiders. Comparatively, 27.9% of American Resources shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

CONSOL Energy beats American Resources on 8 of the 12 factors compared between the two stocks.

About CONSOL Energy (Get Rating)

CONSOL Energy Inc. produces and exports bituminous coal in the United States. It operates through PAMC, CONSOL Marine Terminal, and Other segments. The company engages in the mining, preparation, and marketing of bituminous coal to power generators, industrial end-users, and metallurgical end-users; and provision of coal export terminal services, as well as development of the Itmann Mine and the Greenfield reserves. It owns and operates the Pennsylvania Mining Complex (PAMC), which includes the Bailey Mine, the Enlow Fork Mine, the Harvey Mine, and the Central Preparation Plant; and CONSOL Marine Terminal located in the port of Baltimore. As of December 31, 2021, the company had 612.1 million tons of proven and probable coal reserves at PAMC. It also owns approximately 1.4 billion tons of Greenfield reserves located in the Northern Appalachian, Central Appalachian, and Illinois basins. The company was founded in 1860 and is headquartered in Canonsburg, Pennsylvania.

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.

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