China Natural Resources (NASDAQ:CHNR) & American Resources (NASDAQ:AREC) Financial Survey

American Resources (NASDAQ:AREC) and China Natural Resources (NASDAQ:CHNR) are both small-cap basic materials companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.

Volatility & Risk

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

Profitability

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

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

Insider & Institutional Ownership

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

Analyst Recommendations

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

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

American Resources currently 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, equities analysts plainly believe American Resources is more favorable than China Natural Resources.

Valuation and Earnings

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

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

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

Summary

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

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.

About China Natural Resources

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.