Contrasting Alpha Metallurgical Resources (NYSE:AMR) and Wealth Minerals (OTCMKTS:WMLLF)

Wealth Minerals (OTCMKTS:WMLLF) and Alpha Metallurgical Resources (NYSE:AMR) are both basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, dividends, valuation, earnings and profitability.

Valuation & Earnings

This table compares Wealth Minerals and Alpha Metallurgical Resources”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wealth Minerals	N/A	N/A	-$38.30 million	($0.11)	-0.53
Alpha Metallurgical Resources	$2.23 billion	1.07	$187.58 million	($3.56)	-51.96

Alpha Metallurgical Resources has higher revenue and earnings than Wealth Minerals. Alpha Metallurgical Resources is trading at a lower price-to-earnings ratio than Wealth Minerals, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Wealth Minerals and Alpha Metallurgical Resources, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wealth Minerals	0	0	0	0	0.00
Alpha Metallurgical Resources	1	1	1	0	2.00

Alpha Metallurgical Resources has a consensus price target of $160.50, indicating a potential downside of 13.23%. Given Alpha Metallurgical Resources’ stronger consensus rating and higher probable upside, analysts clearly believe Alpha Metallurgical Resources is more favorable than Wealth Minerals.

Profitability

This table compares Wealth Minerals and Alpha Metallurgical Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Wealth Minerals	N/A	-1,111.33%	-952.56%
Alpha Metallurgical Resources	-2.09%	-2.88%	-1.95%

Risk & Volatility

Wealth Minerals has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500. Comparatively, Alpha Metallurgical Resources has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500.

Institutional & Insider Ownership

0.1% of Wealth Minerals shares are held by institutional investors. Comparatively, 84.3% of Alpha Metallurgical Resources shares are held by institutional investors. 16.0% of Alpha Metallurgical Resources shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Alpha Metallurgical Resources beats Wealth Minerals on 10 of the 13 factors compared between the two stocks.

About Wealth Minerals

Wealth Minerals Ltd., a junior mineral resource exploration company, engages in the acquisition, exploration, and development of mineral properties in Canada, Chile, Peru, and Mexico. The company primarily explores for lithium, as well as for precious metal and copper deposits. Its flagship property is the 100% owned Atacama project that comprises 144 exploration concessions covering an area of approximately 46,200 hectares located in the Atacama Salar in Region II of Antofagasta, northern Chile. Wealth Minerals Ltd. was incorporated in 1994 and is headquartered in Vancouver, Canada.

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.