American Resources (NASDAQ:AREC – Get Free Report) and Mountain Province Diamonds (OTCMKTS:MPVDF – Get Free Report) are both small-cap basic materials companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, dividends, institutional ownership, profitability and earnings.
Profitability
This table compares American Resources and Mountain Province Diamonds’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| American Resources | -13,152.00% | N/A | -21.17% |
| Mountain Province Diamonds | -75.42% | -51.26% | -16.31% |
Volatility & Risk
American Resources has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500. Comparatively, Mountain Province Diamonds has a beta of 1.43, indicating that its share price is 43% more volatile than the S&P 500.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| American Resources | $380,000.00 | 407.46 | -$40.11 million | ($0.49) | -3.73 |
| Mountain Province Diamonds | $195.36 million | 0.03 | -$58.99 million | ($0.52) | -0.06 |
American Resources has higher earnings, but lower revenue than Mountain Province Diamonds. American Resources is trading at a lower price-to-earnings ratio than Mountain Province Diamonds, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current recommendations for American Resources and Mountain Province Diamonds, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| American Resources | 0 | 0 | 2 | 0 | 3.00 |
| Mountain Province Diamonds | 0 | 0 | 0 | 0 | 0.00 |
American Resources presently has a consensus target price of $4.00, suggesting a potential upside of 118.58%. Given American Resources’ stronger consensus rating and higher possible upside, analysts clearly believe American Resources is more favorable than Mountain Province Diamonds.
Institutional and Insider Ownership
9.3% of American Resources shares are owned by institutional investors. Comparatively, 0.5% of Mountain Province Diamonds shares are owned by institutional investors. 16.8% of American Resources shares are owned by company insiders. Comparatively, 4.8% of Mountain Province Diamonds shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Summary
American Resources beats Mountain Province Diamonds on 9 of the 14 factors compared between the two stocks.
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.
About Mountain Province Diamonds
Mountain Province Diamonds Inc. focuses on the mining and marketing of rough diamonds worldwide. The company holds a 49% interest in the Gahcho Kué mine comprising mining leases covering an area of 5,216 hectares; and 100% of the mineral rights of the Kennady North consisting of 22 federal leases and 97 claims covering an area of 113,000 hectares located in the Northwest Territories, Canada. The company was formerly known as Mountain Province Mining Inc. and changed its name to Mountain Province Diamonds Inc. in October 2000. Mountain Province Diamonds Inc. was incorporated in 1986 and is headquartered in Toronto, Canada.
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