Reviewing China Natural Resources (NASDAQ:CHNR) & American Resources (NASDAQ:AREC)

China Natural Resources (NASDAQ:CHNRGet Free Report) and American Resources (NASDAQ:ARECGet Free Report) are both small-cap basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.

Profitability

This table compares China Natural Resources and American Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
China Natural Resources N/A N/A N/A
American Resources -27,532.48% N/A -19.65%

Analyst Recommendations

This is a summary of current recommendations and price targets for China Natural Resources and American Resources, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China Natural Resources 1 0 0 0 1.00
American Resources 1 0 4 1 2.83

American Resources has a consensus price target of $6.00, suggesting a potential upside of 123.88%. Given American Resources’ stronger consensus rating and higher possible upside, analysts clearly believe American Resources is more favorable than China Natural Resources.

Valuation & Earnings

This table compares China Natural Resources and American Resources”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
China Natural Resources $2.94 million 1.46 -$430,000.00 N/A N/A
American Resources $145,026.00 1,873.69 -$39.25 million ($0.41) -6.54

China Natural Resources has higher revenue and earnings than American Resources.

Institutional and Insider Ownership

0.0% of China Natural Resources shares are owned by institutional investors. Comparatively, 9.3% of American Resources shares are owned by institutional investors. 23.2% of China Natural Resources shares are owned by insiders. Comparatively, 16.8% of American Resources shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

China Natural Resources has a beta of 0.1, suggesting that its stock price is 90% less volatile than the S&P 500. Comparatively, American Resources has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500.

Summary

American Resources beats China Natural Resources on 7 of the 12 factors compared between the two stocks.

About China Natural Resources

(Get Free Report)

China Natural Resources, Inc., through its subsidiaries, engages in the exploration and mining of metal properties in the People's Republic of China. It explores for lead, silver, and other nonferrous metals. The company holds interest in the Moruogu Tong mine that covers an area of 7.81 square kilometers located in Bayannaoer City, Inner Mongolia. It also offers equipment for rural wastewater treatment; and engineering. The company was incorporated in 1993 and is headquartered in Sheung Wan, Hong Kong. China Natural Resources, Inc. operates as a subsidiary of Feishang Industrial Group Co., Ltd.

About American Resources

(Get Free Report)

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.

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