Critical Review: American Resources (NASDAQ:AREC) vs. Orbite Aluminae (OTCMKTS:EORBF)

American Resources (NASDAQ:AREC) and Orbite Aluminae (OTCMKTS:EORBF) are both basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, earnings, institutional ownership, analyst recommendations, risk and dividends.

Insider & Institutional Ownership

9.3% of American Resources shares are held by institutional investors. 16.8% of American Resources shares 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.

Earnings and Valuation

This table compares American Resources and Orbite Aluminae”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Resources	$330,304.00	1,160.36	-$40.11 million	($0.47)	-8.19
Orbite Aluminae	N/A	N/A	N/A	N/A	N/A

Orbite Aluminae has lower revenue, but higher earnings than American Resources.

Analyst Recommendations

This is a breakdown of current ratings and target prices for American Resources and Orbite Aluminae, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Resources	1	0	3	1	2.80
Orbite Aluminae	0	0	0	0	0.00

American Resources currently has a consensus target price of $5.50, indicating a potential upside of 42.86%. Given American Resources’ stronger consensus rating and higher probable upside, equities research analysts plainly believe American Resources is more favorable than Orbite Aluminae.

Profitability

This table compares American Resources and Orbite Aluminae’s 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%
Orbite Aluminae	N/A	N/A	N/A

Volatility and Risk

American Resources has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500. Comparatively, Orbite Aluminae has a beta of -9.03, indicating that its stock price is 1,003% less volatile than the S&P 500.

Summary

American Resources beats Orbite Aluminae on 8 of the 10 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 Orbite Aluminae

Orbite Technologies Inc. operates as a clean technology based mineral-processing and resource development company in Canada. It produces high-purity alumina, silica, hematite, magnesium oxide, titanium oxide, smelter-grade alumina, and rare earth and rare metal oxides from various feedstocks, including red mud, fly-ash, aluminous clays, mine tailings, bauxite, and kaolin clay, as well as serpentine residues from chrysotile processing sites. The company owns 100% interest in 99 mineral claims totaling approximately 55 square kilometers, as well as 1 mining lease of 98.5 hectares at a site near Grande-Vallée, Québec. It also owns 100% interest in 138 mineral claims covering approximately 78.4 square kilometers at sites near Rimouski and Cap-Chat, Québec. The company was formerly known as Orbite Aluminae Inc. and changed its name to Orbite Technologies Inc. in June 2015. Orbite Technologies Inc. was incorporated in 1983 and is headquartered in Laval, Canada.