Financial Comparison: American Resources (AREC) & The Competition

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

Volatility and Risk

American Resources has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500. Comparatively, American Resources’ rivals have a beta of 0.76, meaning that their average stock price is 24% less volatile than the S&P 500.

Valuation & Earnings

This table compares American Resources and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
American Resources	$380,000.00	-$40.11 million	-2.76
American Resources Competitors	$8.36 billion	$455.46 million	-2.77

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

Insider & Institutional 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, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares American Resources and its rivals’ 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	-976.52%	-12.62%	-5.24%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for American Resources and its rivals, 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	617	1694	3331	142	2.52

American Resources currently has a consensus price target of $4.00, suggesting a potential upside of 196.30%. As a group, “MINING – MISC” companies have a potential upside of 9.19%. Given American Resources’ stronger consensus rating and higher possible upside, analysts plainly believe American Resources is more favorable than its rivals.

Summary

American Resources beats its rivals on 7 of the 13 factors compared.

American Resources Company Profile

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.