Analyzing American Resources (AREC) & Its Competitors

American Resources (NASDAQ:AREC) is one of 103 publicly-traded companies in the “MINING – MISC” industry, but how does it weigh in compared to its peers? We will compare American Resources to similar companies based on the strength of its valuation, risk, analyst recommendations, profitability, dividends, earnings and institutional ownership.

Risk and Volatility

American Resources has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500. Comparatively, American Resources’ peers have a beta of 0.77, indicating that their average stock price is 23% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
American Resources	-12,881.75%	N/A	-20.29%
American Resources Competitors	-938.79%	-12.66%	-5.27%

Earnings & Valuation

This table compares American Resources and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
American Resources	$380,000.00	-$40.11 million	-1.88
American Resources Competitors	$8.21 billion	$447.87 million	-0.77

American Resources’ peers have higher revenue and earnings than American Resources. American Resources is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of recent recommendations and price targets for American Resources and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Resources	0	0	2	0	3.00
American Resources Competitors	612	1677	3302	137	2.52

American Resources presently has a consensus target price of $4.00, suggesting a potential upside of 334.74%. As a group, “MINING – MISC” companies have a potential upside of 23.99%. Given American Resources’ stronger consensus rating and higher possible upside, equities analysts plainly believe American Resources is more favorable than its peers.

Institutional & Insider Ownership

9.3% of American Resources shares are held by institutional investors. Comparatively, 36.9% of shares of all “MINING – MISC” companies are held by institutional investors. 16.8% of American Resources shares are held by company insiders. Comparatively, 9.5% of shares of all “MINING – MISC” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

American Resources peers beat American Resources on 7 of the 13 factors compared.

About American Resources

American Resources Corporation, together with its subsidiaries, extracts, processes, transports, and sells metallurgical coal to the steel and industrial industries. It supplies raw materials; and sells coal used in pulverized coal injections. The company was founded in 2006 and is headquartered in Fishers, Indiana.