Alpha Metallurgical Resources (NYSE:AMR – Get Free Report) and Entree Gold (OTCMKTS:ERLFF – Get Free Report) are both basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, earnings, profitability, analyst recommendations and risk.
Insider and Institutional Ownership
84.3% of Alpha Metallurgical Resources shares are owned by institutional investors. 16.0% of Alpha Metallurgical Resources shares are owned by company insiders. Comparatively, 3.4% of Entree Gold shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Alpha Metallurgical Resources and Entree Gold”s top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Alpha Metallurgical Resources | $2.96 billion | 0.75 | $187.58 million | ($2.85) | -59.34 |
Entree Gold | N/A | N/A | -$14.32 million | ($0.09) | -17.00 |
Alpha Metallurgical Resources has higher revenue and earnings than Entree Gold. Alpha Metallurgical Resources is trading at a lower price-to-earnings ratio than Entree Gold, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Alpha Metallurgical Resources and Entree Gold, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Alpha Metallurgical Resources | 1 | 2 | 1 | 0 | 2.00 |
Entree Gold | 0 | 1 | 0 | 0 | 2.00 |
Alpha Metallurgical Resources presently has a consensus target price of $160.50, indicating a potential downside of 5.10%. Given Alpha Metallurgical Resources’ higher possible upside, research analysts plainly believe Alpha Metallurgical Resources is more favorable than Entree Gold.
Profitability
This table compares Alpha Metallurgical Resources and Entree Gold’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Alpha Metallurgical Resources | -1.57% | -2.28% | -1.54% |
Entree Gold | N/A | N/A | -229.63% |
Risk and Volatility
Alpha Metallurgical Resources has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500. Comparatively, Entree Gold has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500.
Summary
Alpha Metallurgical Resources beats Entree Gold on 8 of the 12 factors compared between the two stocks.
About Alpha Metallurgical Resources
Alpha Metallurgical Resources, Inc., a mining company, produces, processes, and sells met and thermal coal in Virginia and West Virginia. The company offers metallurgical coal products. It operates twenty-two active mines and nine coal preparation and load-out facilities. The company was formerly known as Contura Energy, Inc. and changed its name to Alpha Metallurgical Resources, Inc. in February 2021. Alpha Metallurgical Resources, Inc. was incorporated in 2016 and is headquartered in Bristol, Tennessee.
About Entree Gold
Entrée Resources Ltd., a mining company, engages in the exploration, evaluation, and development of mineral property interests in Canada. Its principal asset is the Entrée/Oyu Tolgoi joint venture property comprising Hugo North Extension copper-gold deposit and the Heruga copper-gold-molybdenum deposit located in Mongolia. The company was formerly known as Entrée Gold Inc. and changed its name to Entrée Resources Ltd. in May 2017. Entrée Resources Ltd. was incorporated in 1995 and is headquartered in Vancouver, Canada.
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