Analyzing Alpha Metallurgical Resources (NYSE:AMR) & Hycroft Mining (NASDAQ:HYMC)

Hycroft Mining (NASDAQ:HYMC) and Alpha Metallurgical Resources (NYSE:AMR) are both mid-cap basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, risk, profitability, dividends and valuation.

Volatility and Risk

Hycroft Mining has a beta of 2.58, meaning that its share price is 158% more volatile than the S&P 500. Comparatively, Alpha Metallurgical Resources has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Hycroft Mining and Alpha Metallurgical Resources, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hycroft Mining	1	0	0	0	1.00
Alpha Metallurgical Resources	2	4	0	0	1.67

Alpha Metallurgical Resources has a consensus target price of $196.00, indicating a potential upside of 2.82%. Given Alpha Metallurgical Resources’ stronger consensus rating and higher possible upside, analysts clearly believe Alpha Metallurgical Resources is more favorable than Hycroft Mining.

Earnings & Valuation

This table compares Hycroft Mining and Alpha Metallurgical Resources”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hycroft Mining	N/A	N/A	-$40.66 million	($1.62)	-24.86
Alpha Metallurgical Resources	$2.13 billion	1.15	-$61.69 million	($4.74)	-40.22

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

Insider & Institutional Ownership

7.4% of Hycroft Mining shares are owned by institutional investors. Comparatively, 84.3% of Alpha Metallurgical Resources shares are owned by institutional investors. 1.3% of Hycroft Mining shares are owned by company insiders. Comparatively, 16.0% of Alpha Metallurgical Resources shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hycroft Mining	N/A	-80.76%	-20.72%
Alpha Metallurgical Resources	-2.90%	-3.88%	-2.63%

Summary

Alpha Metallurgical Resources beats Hycroft Mining on 7 of the 12 factors compared between the two stocks.

About Hycroft Mining

Hycroft Mining Holding Corporation, together with its subsidiaries, operates as a gold and silver development company in the United States. The company holds interests in the Hycroft mine that consists of 30 private parcels with patented claims comprising approximately 1,787 acres, and 3,247 unpatented mining claims that encompass approximately 62,298 acres located in the state of Nevada. Hycroft Mining Holding Corporation is based in Winnemucca, Nevada.

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.