Critical Review: Alpha Metallurgical Resources (NYSE:AMR) vs. Silver Standard Resources (NASDAQ:SSRM)

Silver Standard Resources (NASDAQ:SSRM) and Alpha Metallurgical Resources (NYSE:AMR) are both mid-cap materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.

Insider and Institutional Ownership

68.3% of Silver Standard Resources shares are owned by institutional investors. Comparatively, 84.3% of Alpha Metallurgical Resources shares are owned by institutional investors. 0.8% of Silver Standard Resources shares are owned by insiders. Comparatively, 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 recent ratings and price targets for Silver Standard Resources and Alpha Metallurgical Resources, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Silver Standard Resources	0	2	8	1	2.91
Alpha Metallurgical Resources	2	5	0	0	1.71

Silver Standard Resources currently has a consensus price target of $42.40, suggesting a potential upside of 16.71%. Alpha Metallurgical Resources has a consensus price target of $176.00, suggesting a potential upside of 1.07%. Given Silver Standard Resources’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Silver Standard Resources is more favorable than Alpha Metallurgical Resources.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Silver Standard Resources	12.30%	16.17%	11.84%
Alpha Metallurgical Resources	-2.23%	-2.99%	-2.01%

Risk & Volatility

Silver Standard Resources has a beta of -0.04, indicating that its share price is 104% less volatile than the S&P 500. Comparatively, Alpha Metallurgical Resources has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500.

Earnings and Valuation

This table compares Silver Standard Resources and Alpha Metallurgical Resources”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Silver Standard Resources	$1.63 billion	4.49	$395.75 million	$1.10	33.03
Alpha Metallurgical Resources	$2.13 billion	1.04	-$61.69 million	($3.58)	-48.64

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

Summary

Silver Standard Resources beats Alpha Metallurgical Resources on 11 of the 15 factors compared between the two stocks.

About Silver Standard Resources

SSR Mining Inc., together with its subsidiaries, engages in the operation, acquisition, exploration, and development of precious metal resource properties in the United States, Türkiye, Canada, and Argentina. The company explores for gold doré, copper, silver, lead, and zinc deposits. Its mines include the Çöpler, located in Erzincan province, Turkey; the Marigold, located in Nevada, the United States; the Seabee, located in Saskatchewan, Canada; and the Puna, located in Jujuy province, Argentina. The company was formerly known as Silver Standard Resources Inc. and changed its name to SSR Mining Inc. in August 2017. SSR Mining Inc. was incorporated in 1946 and is based in Denver, Colorado.

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.