Head-To-Head Contrast: Alpha Metallurgical Resources (NYSE:AMR) vs. Kaiser Aluminum (NASDAQ:KALU)

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

Volatility & Risk

Kaiser Aluminum has a beta of 1.59, indicating that its stock price is 59% more volatile than the S&P 500. Comparatively, Alpha Metallurgical Resources has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500.

Dividends

Kaiser Aluminum pays an annual dividend of $3.08 per share and has a dividend yield of 2.1%. Alpha Metallurgical Resources pays an annual dividend of $2.00 per share and has a dividend yield of 1.1%. Kaiser Aluminum pays out 22.8% of its earnings in the form of a dividend. Alpha Metallurgical Resources pays out -55.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Earnings and Valuation

This table compares Kaiser Aluminum and Alpha Metallurgical Resources”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kaiser Aluminum	$3.37 billion	0.73	$112.50 million	$13.49	11.10
Alpha Metallurgical Resources	$2.07 billion	1.07	-$61.69 million	($3.58)	-48.75

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

Analyst Recommendations

This is a summary of current ratings for Kaiser Aluminum and Alpha Metallurgical Resources, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kaiser Aluminum	1	2	3	0	2.33
Alpha Metallurgical Resources	2	5	0	0	1.71

Kaiser Aluminum presently has a consensus target price of $166.75, suggesting a potential upside of 11.36%. Alpha Metallurgical Resources has a consensus target price of $179.75, suggesting a potential upside of 2.99%. Given Kaiser Aluminum’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Kaiser Aluminum is more favorable than Alpha Metallurgical Resources.

Insider & Institutional Ownership

99.3% of Kaiser Aluminum shares are held by institutional investors. Comparatively, 84.3% of Alpha Metallurgical Resources shares are held by institutional investors. 1.3% of Kaiser Aluminum shares are held by insiders. Comparatively, 18.2% of Alpha Metallurgical Resources shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kaiser Aluminum	5.49%	24.71%	7.86%
Alpha Metallurgical Resources	-2.23%	-2.99%	-2.01%

Summary

Kaiser Aluminum beats Alpha Metallurgical Resources on 13 of the 16 factors compared between the two stocks.

About Kaiser Aluminum

Kaiser Aluminum Corporation, together with its subsidiaries, engages in manufacture and sale of semi-fabricated specialty aluminum mill products in the United States and internationally. It offers rolled, extruded, and drawn aluminum products used for aerospace and defense, aluminum beverage and food packaging, automotive and general engineering products. The company's automotive extrusions include extruded aluminum products for structural components, crash management systems, anti-lock braking systems, and drawn tubes for drive shafts, as well as offers fabrication services, including sawing and cutting to length. Its packaging products consist of bare and coated 3000- and 5000-series alloy aluminum coil used for beverage and food packaging industry. In addition, the company's general engineering products comprise alloy plate, sheet, rod, bar, tube, wire, and standard extrusion shapes used in various applications, including the production of military vehicles, ordnances, semiconductor manufacturing cells, electronic devices, after-market motor sport parts, tooling plates, parts for machinery and equipment, bolts, screws, nails, and rivets. Further, its rerolled, extruded, drawn, and cast billet aluminum products used for industrial end uses. The company sells its products directly to customers through sales personnel located in the United States, Canada, Western Europe, and China, as well as through independent sales agents in other regions of Asia, Latin America, and the Middle East. Kaiser Aluminum Corporation was founded in 1946 and is headquartered in Franklin, Tennessee.

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.