Warrior Met Coal (NYSE:HCC – Get Rating) and American Resources (NASDAQ:AREC – Get Rating) are both small-cap oils/energy companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, risk, institutional ownership, earnings and analyst recommendations.
This table compares Warrior Met Coal and American Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Warrior Met Coal||26.02%||45.69%||26.19%|
This is a breakdown of recent ratings for Warrior Met Coal and American Resources, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Warrior Met Coal||0||4||1||0||2.20|
Warrior Met Coal currently has a consensus target price of $33.75, indicating a potential upside of 5.30%. American Resources has a consensus target price of $4.50, indicating a potential upside of 221.43%. Given American Resources’ stronger consensus rating and higher probable upside, analysts plainly believe American Resources is more favorable than Warrior Met Coal.
Earnings & Valuation
This table compares Warrior Met Coal and American Resources’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Warrior Met Coal||$1.06 billion||1.56||$150.88 million||$6.16||5.20|
|American Resources||$7.76 million||11.86||-$32.50 million||($0.60)||-2.33|
Warrior Met Coal has higher revenue and earnings than American Resources. American Resources is trading at a lower price-to-earnings ratio than Warrior Met Coal, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
90.2% of Warrior Met Coal shares are owned by institutional investors. Comparatively, 9.5% of American Resources shares are owned by institutional investors. 1.0% of Warrior Met Coal shares are owned by insiders. Comparatively, 27.9% of American Resources shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Volatility and Risk
Warrior Met Coal has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500. Comparatively, American Resources has a beta of 0.07, meaning that its stock price is 93% less volatile than the S&P 500.
Warrior Met Coal beats American Resources on 9 of the 13 factors compared between the two stocks.
Warrior Met Coal Company Profile (Get Rating)
Warrior Met Coal, Inc. produces and exports non-thermal metallurgical coal for the steel industry. It operates two underground mines located in Alabama. The company sells its metallurgical coal to a customer base of blast furnace steel producers located primarily in Europe, South America, and Asia. It also sells natural gas, which is extracted as a byproduct from coal production. Warrior Met Coal, Inc. was incorporated in 2015 and is headquartered in Brookwood, Alabama.
American Resources Company Profile (Get Rating)
American Resources Corporation engages in the extraction, processing, transportation, distribution, and sale of metallurgical coal to the steel industries. The company supplies raw materials; and sells coal used in pulverized coal injections. It has a portfolio of operations located in the Pike, Knott, and Letcher Counties in Kentucky; and Wyoming County, West Virginia. American Resources Corporation was founded in 2006 and is headquartered in Fishers, Indiana.
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