Analyzing American Resources (NASDAQ:AREC) and Orbite Aluminae (OTCMKTS:EORBF)

Orbite Aluminae (OTCMKTS:EORBF) and American Resources (NASDAQ:AREC) are both basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, valuation, analyst recommendations, institutional ownership, profitability and earnings.

Institutional and Insider Ownership

9.3% of American Resources shares are held by institutional investors. 16.8% of American Resources shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Orbite Aluminae and American Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Orbite Aluminae	N/A	N/A	N/A
American Resources	-13,152.00%	N/A	-21.17%

Risk & Volatility

Orbite Aluminae has a beta of -9.03, meaning that its share price is 1,003% less volatile than the S&P 500. Comparatively, American Resources has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Orbite Aluminae and American Resources, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orbite Aluminae	0	0	0	0	0.00
American Resources	1	0	3	1	2.80

American Resources has a consensus target price of $5.50, indicating a potential upside of 39.35%. Given American Resources’ stronger consensus rating and higher probable upside, analysts plainly believe American Resources is more favorable than Orbite Aluminae.

Valuation & Earnings

This table compares Orbite Aluminae and American Resources”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Orbite Aluminae	N/A	N/A	N/A	N/A	N/A
American Resources	$330,304.00	1,189.59	-$40.11 million	($0.47)	-8.40

Orbite Aluminae has higher earnings, but lower revenue than American Resources.

Summary

American Resources beats Orbite Aluminae on 8 of the 10 factors compared between the two stocks.

About Orbite Aluminae

Orbite Technologies Inc. operates as a clean technology based mineral-processing and resource development company in Canada. It produces high-purity alumina, silica, hematite, magnesium oxide, titanium oxide, smelter-grade alumina, and rare earth and rare metal oxides from various feedstocks, including red mud, fly-ash, aluminous clays, mine tailings, bauxite, and kaolin clay, as well as serpentine residues from chrysotile processing sites. The company owns 100% interest in 99 mineral claims totaling approximately 55 square kilometers, as well as 1 mining lease of 98.5 hectares at a site near Grande-Vallée, Québec. It also owns 100% interest in 138 mineral claims covering approximately 78.4 square kilometers at sites near Rimouski and Cap-Chat, Québec. The company was formerly known as Orbite Aluminae Inc. and changed its name to Orbite Technologies Inc. in June 2015. Orbite Technologies Inc. was incorporated in 1983 and is headquartered in Laval, Canada.

About American Resources

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.