American Resources (NASDAQ:AREC – Get Free Report) and NioCorp Developments (NASDAQ:NB – Get Free Report) are both small-cap basic materials companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, risk, profitability and valuation.
Profitability
This table compares American Resources and NioCorp Developments’ 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% |
| NioCorp Developments | N/A | -25.73% | -21.10% |
Analyst Ratings
This is a breakdown of current recommendations and price targets for American Resources and NioCorp Developments, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| American Resources | 1 | 0 | 4 | 0 | 2.60 |
| NioCorp Developments | 1 | 0 | 3 | 1 | 2.80 |
Volatility & Risk
American Resources has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500. Comparatively, NioCorp Developments has a beta of -0.14, indicating that its stock price is 114% less volatile than the S&P 500.
Institutional & Insider Ownership
9.3% of American Resources shares are owned by institutional investors. Comparatively, 4.0% of NioCorp Developments shares are owned by institutional investors. 16.8% of American Resources shares are owned by company insiders. Comparatively, 19.1% of NioCorp Developments shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares American Resources and NioCorp Developments”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| American Resources | $380,000.00 | 819.12 | -$39.25 million | ($0.41) | -7.49 |
| NioCorp Developments | N/A | N/A | -$17.41 million | ($0.81) | -6.85 |
NioCorp Developments has lower revenue, but higher earnings than American Resources. American Resources is trading at a lower price-to-earnings ratio than NioCorp Developments, indicating that it is currently the more affordable of the two stocks.
Summary
American Resources beats NioCorp Developments on 8 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 NioCorp Developments
NioCorp Developments Ltd. engages in the exploration and development of mineral deposits in North America. It owns and develops the Elk Creek niobium/scandium/titanium project that owns one 226.43-acre parcel of land and associated mineral rights, and an additional 40 acres of mineral rights, as well as an optioned land package that covers an area of 1,396 acres located in Johnson County, southeast Nebraska. The company was formerly known as Quantum Rare Earth Developments Corp. and changed its name to NioCorp Developments Ltd. in March 2013. NioCorp Developments Ltd. was incorporated in 1987 and is headquartered in Centennial, Colorado.
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