Contrasting American Resources (AREC) & Its Peers

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

Insider & Institutional Ownership

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

Valuation and Earnings

This table compares American Resources and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
American Resources	$380,000.00	-$40.11 million	-1.81
American Resources Competitors	$8.21 billion	$447.87 million	-0.61

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

Analyst Recommendations

This is a breakdown of recent recommendations for American Resources and its competitors, as provided 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	613	1679	3306	139	2.52

American Resources presently has a consensus price target of $4.00, suggesting a potential upside of 349.89%. As a group, “MINING – MISC” companies have a potential upside of 21.76%. Given American Resources’ stronger consensus rating and higher probable upside, equities analysts clearly believe American Resources is more favorable than its competitors.

Volatility and Risk

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

Profitability

This table compares American Resources and its competitors’ 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%

Summary

American Resources competitors 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.