Analyzing American Resources (AREC) & Its Peers

American Resources (NASDAQ:AREC) is one of 103 publicly-traded companies in the “MINING – MISC” industry, but how does it weigh in compared to its competitors? We will compare American Resources to similar companies based on the strength of its institutional ownership, analyst recommendations, valuation, dividends, risk, profitability and earnings.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for American Resources and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Resources	0	0	2	0	3.00
American Resources Competitors	613	1680	3307	139	2.52

American Resources presently has a consensus target price of $4.00, suggesting a potential upside of 393.83%. As a group, “MINING – MISC” companies have a potential upside of 22.69%. Given American Resources’ stronger consensus rating and higher probable upside, equities analysts plainly believe American Resources is more favorable than its competitors.

Insider & Institutional Ownership

9.3% of American Resources shares are owned by institutional investors. Comparatively, 36.9% of shares of all “MINING – MISC” companies are owned by institutional investors. 16.8% of American Resources shares are owned by company insiders. Comparatively, 9.5% of shares of all “MINING – MISC” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares American Resources and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Resources	-12,881.75%	N/A	-20.29%
American Resources Competitors	-938.79%	-12.66%	-5.27%

Volatility & Risk

American Resources has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500. Comparatively, American Resources’ competitors have a beta of 0.77, meaning that their average share price is 23% less volatile than the S&P 500.

Valuation and Earnings

This table compares American Resources and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
American Resources	$380,000.00	-$40.11 million	-1.65
American Resources Competitors	$8.17 billion	$447.87 million	-0.32

American Resources’ competitors have higher revenue and earnings than American Resources. American Resources is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

American Resources competitors beat American Resources on 7 of the 13 factors compared.

American Resources Company Profile

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.