American Resources (AREC) versus Its Peers Critical Survey

American Resources (NASDAQ:AREC) is one of 103 publicly-traded companies in the “MINING – MISC” industry, but how does it compare to its rivals? We will compare American Resources to related companies based on the strength of its profitability, earnings, analyst recommendations, valuation, dividends, risk and institutional ownership.

Risk and Volatility

American Resources has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500. Comparatively, American Resources’ rivals have a beta of 0.77, meaning that their average share price is 23% less volatile than the S&P 500.

Profitability

This table compares American Resources and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Resources	-12,881.75%	N/A	-20.29%
American Resources Competitors	-938.79%	-12.66%	-5.27%

Institutional and Insider Ownership

9.3% of American Resources shares are owned by institutional investors. Comparatively, 36.2% of shares of all “MINING – MISC” companies are owned by institutional investors. 16.8% of American Resources shares are owned by insiders. Comparatively, 9.8% of shares of all “MINING – MISC” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings for American Resources and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Resources	0	0	2	0	3.00
American Resources Competitors	614	1681	3309	139	2.52

American Resources presently has a consensus target price of $4.00, suggesting a potential upside of 400.63%. As a group, “MINING – MISC” companies have a potential upside of 18.11%. Given American Resources’ stronger consensus rating and higher probable upside, analysts clearly believe American Resources is more favorable than its rivals.

Earnings & Valuation

This table compares American Resources and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
American Resources	$321,142.00	-$40.11 million	-1.63
American Resources Competitors	$8.20 billion	$447.87 million	-0.34

American Resources’ rivals have higher revenue and earnings than American Resources. American Resources is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

American Resources rivals beat American Resources on 7 of the 13 factors compared.

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.