Critical Review: Alpha Metallurgical Resources (NYSE:AMR) versus Hemis (OTCMKTS:MOCI)

Alpha Metallurgical Resources (NYSE:AMR) and Hemis (OTCMKTS:MOCI) are both basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, risk, institutional ownership, profitability, valuation and earnings.

Institutional and Insider Ownership

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Alpha Metallurgical Resources and Hemis, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alpha Metallurgical Resources	2	4	0	0	1.67
Hemis	0	0	0	0	0.00

Alpha Metallurgical Resources currently has a consensus price target of $195.33, indicating a potential upside of 20.53%. Given Alpha Metallurgical Resources’ stronger consensus rating and higher possible upside, research analysts clearly believe Alpha Metallurgical Resources is more favorable than Hemis.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Alpha Metallurgical Resources	-1.83%	-2.47%	-1.67%
Hemis	N/A	N/A	N/A

Valuation and Earnings

This table compares Alpha Metallurgical Resources and Hemis”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	$2.12 billion	0.97	-$61.69 million	($3.00)	-54.02
Hemis	N/A	N/A	N/A	N/A	N/A

Hemis has lower revenue, but higher earnings than Alpha Metallurgical Resources.

Risk and Volatility

Alpha Metallurgical Resources has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500. Comparatively, Hemis has a beta of -3.31, meaning that its share price is 431% less volatile than the S&P 500.

Summary

Alpha Metallurgical Resources beats Hemis on 6 of the 9 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 Hemis

Energy Holdings, Inc. intends to provide photovoltaic (PV) solar and energy storage solutions. It focuses on providing services related to sustainable clean energy products that include design, project development, sales and lease, engineering, procurement, manufacture, assembly and construction services, energy system incentives, and operations and maintenance services. The company was formerly known as Modern Cinema Group, Inc. and changed its name to Energy Holdings, Inc. in February 2022. Energy Holdings, Inc. was founded in 2005 and is based in Las Vegas, Nevada.