Financial Survey: IBC Advanced Alloys (OTCMKTS:IAALF) vs. American Resources (NASDAQ:AREC)

IBC Advanced Alloys (OTCMKTS:IAALF) and American Resources (NASDAQ:AREC) are both small-cap basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, risk, analyst recommendations, earnings and institutional ownership.

Profitability

This table compares IBC Advanced Alloys and American Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
IBC Advanced Alloys	-13.85%	-62.82%	-10.43%
American Resources	-13,152.00%	N/A	-21.17%

Earnings & Valuation

This table compares IBC Advanced Alloys and American Resources”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IBC Advanced Alloys	$25.66 million	0.19	$1.70 million	($0.02)	-2.10
American Resources	$380,000.00	458.68	-$40.11 million	($0.49)	-4.20

IBC Advanced Alloys has higher revenue and earnings than American Resources. American Resources is trading at a lower price-to-earnings ratio than IBC Advanced Alloys, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

IBC Advanced Alloys has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500. Comparatively, American Resources has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for IBC Advanced Alloys and American Resources, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IBC Advanced Alloys	0	0	0	0	0.00
American Resources	0	0	2	0	3.00

American Resources has a consensus target price of $4.00, indicating a potential upside of 94.17%. Given American Resources’ stronger consensus rating and higher probable upside, analysts plainly believe American Resources is more favorable than IBC Advanced Alloys.

Institutional & Insider Ownership

9.3% of American Resources shares are owned by institutional investors. 16.8% of American Resources shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

About IBC Advanced Alloys

IBC Advanced Alloys Corp. develops, produces, and sells specialty alloy products in the United States and internationally. The company operates through Copper Alloys and Engineered Materials segments. It offers various copper alloys as castings and forgings, such as beryllium copper, chrome copper, oxygen-free high conductivity copper, and aluminum bronze in the form of plates, blocks, rounds, discs, bars, rings, tubes, rods, and other custom forgings, as well as specialty copper alloy forgings for plastic mold tooling and resistance welding applications. The company also provides beryllium-aluminum castings, beryllium-aluminum alloys, beryllium-copper alloys, high-strength beryllium-copper casting alloys, high-conductivity beryllium-copper casting alloys, and beryllium-nickel casting alloys. In addition, it manufactures Thermal-Mold Super, a beryllium-free mold alloy of copper-nickel-silicon-chrome, as well as provides tolling services and consulting. It serves automotive, defense, resistance welding, electronics, industrial equipment, injection molding, foundry, aerospace, and oil and gas industries. The company was formerly known as International Beryllium Corporation and changed its name to IBC Advanced Alloys Corp. in March 2009. IBC Advanced Alloys Corp. is headquartered in Franklin, Indiana.

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.