Analyzing Alpha Metallurgical Resources (NYSE:AMR) and Tredegar (NYSE:TG)

Alpha Metallurgical Resources (NYSE:AMR) and Tredegar (NYSE:TG) are both materials companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.

Earnings and Valuation

This table compares Alpha Metallurgical Resources and Tredegar”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alpha Metallurgical Resources	$2.13 billion	1.04	-$61.69 million	($3.58)	-48.64
Tredegar	$781.74 million	0.31	$33.48 million	$0.96	7.13

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Alpha Metallurgical Resources and Tredegar, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alpha Metallurgical Resources	2	5	0	0	1.71
Tredegar	0	1	0	0	2.00

Alpha Metallurgical Resources presently has a consensus target price of $176.00, suggesting a potential upside of 1.07%. Given Alpha Metallurgical Resources’ higher possible upside, equities analysts plainly believe Alpha Metallurgical Resources is more favorable than Tredegar.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Alpha Metallurgical Resources	-2.23%	-2.99%	-2.01%
Tredegar	4.26%	14.52%	8.07%

Risk and Volatility

Alpha Metallurgical Resources has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500. Comparatively, Tredegar has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500.

Insider & Institutional Ownership

84.3% of Alpha Metallurgical Resources shares are owned by institutional investors. Comparatively, 79.2% of Tredegar shares are owned by institutional investors. 18.2% of Alpha Metallurgical Resources shares are owned by insiders. Comparatively, 2.5% of Tredegar shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Tredegar beats Alpha Metallurgical Resources on 8 of the 13 factors compared between the two stocks.

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.

About Tredegar

Tredegar Corporation manufactures and sells aluminum extrusions, polyethylene (PE) films, and plastic and polyester films in the United States and internationally. It operates through three segments: Aluminum Extrusions, PE Films, and Flexible Packaging Films. The Aluminum Extrusions segment produces soft and medium strength alloyed aluminum extrusions, custom fabricated and finished aluminum extrusions for the building and construction, automotive and transportation, consumer durables, machinery and equipment, electrical and renewable energy, and distribution markets; and manufactures mill, anodized, and painted and alloyed aluminum extrusions to fabricators and distributors. The PE Films segment offers single- and multi-layer surface protection films for protecting components of flat panel and flexible displays that are used in televisions, monitors, notebooks, smart phones, tablets, e-readers, and digital signage under the UltraMask, ForceField, ForceField PEARL, Pearl A, and Obsidian brands. This segment provides polyethylene overwrap for bathroom tissue and paper towels, as well as polyethylene overwrap films and films for other markets. The Flexible Packaging Films segment offers polyester-based films for food packaging and industrial applications under the Ecophane and Sealphane brands. Tredegar Corporation was incorporated in 1988 and is headquartered in Richmond, Virginia.