American Resources (NASDAQ:AREC – Get Free Report) and Surge Battery Metals (OTCMKTS:NILIF – Get Free Report) are both small-cap basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, earnings, institutional ownership, dividends, valuation, analyst recommendations and risk.
Profitability
This table compares American Resources and Surge Battery Metals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| American Resources | -27,532.48% | N/A | -19.65% |
| Surge Battery Metals | N/A | -59.46% | -57.62% |
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for American Resources and Surge Battery Metals, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| American Resources | 1 | 0 | 4 | 1 | 2.83 |
| Surge Battery Metals | 0 | 0 | 0 | 0 | 0.00 |
Insider and 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 large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Valuation & Earnings
This table compares American Resources and Surge Battery Metals”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| American Resources | $145,026.00 | 1,594.03 | -$39.25 million | ($0.41) | -5.56 |
| Surge Battery Metals | N/A | N/A | -$7.19 million | ($0.04) | -14.63 |
Surge Battery Metals has lower revenue, but higher earnings than American Resources. Surge Battery Metals is trading at a lower price-to-earnings ratio than American Resources, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
American Resources has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500. Comparatively, Surge Battery Metals has a beta of 0.66, indicating that its share price is 34% less volatile than the S&P 500.
Summary
American Resources beats Surge Battery Metals on 11 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 Surge Battery Metals
Surge Battery Metals Inc., an exploration stage company, engages in the acquisition, exploration, and development of mineral properties in North America. It primarily explores for lithium and nickel. The company's flagship property is the 100% owned Nevada North lithium project consisting of 243 mineral claims located in Elko County, Nevada. The company was formerly known as Copper Creek Gold Corp. and changed its name to Surge Exploration Inc. in April 2018. Surge Battery Metals Inc. was incorporated in 1987 and is based in Vancouver, Canada.
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