Analyzing Alpha Metallurgical Resources (NYSE:AMR) & Norsk Hydro ASA (OTCMKTS:NHYDY)

Norsk Hydro ASA (OTCMKTS:NHYDY) and Alpha Metallurgical Resources (NYSE:AMR) are both basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.

Analyst Ratings

This is a summary of current ratings and target prices for Norsk Hydro ASA and Alpha Metallurgical Resources, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Norsk Hydro ASA	0	6	2	0	2.25
Alpha Metallurgical Resources	1	1	1	0	2.00

Alpha Metallurgical Resources has a consensus price target of $160.50, indicating a potential downside of 13.06%. Given Alpha Metallurgical Resources’ higher possible upside, analysts clearly believe Alpha Metallurgical Resources is more favorable than Norsk Hydro ASA.

Institutional & Insider Ownership

0.0% of Norsk Hydro ASA shares are held by institutional investors. Comparatively, 84.3% of Alpha Metallurgical Resources shares are held by institutional investors. 0.0% of Norsk Hydro ASA shares are held by insiders. Comparatively, 16.0% of Alpha Metallurgical 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.

Volatility and Risk

Norsk Hydro ASA has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500. Comparatively, Alpha Metallurgical Resources has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500.

Profitability

This table compares Norsk Hydro ASA and Alpha Metallurgical Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Norsk Hydro ASA	4.96%	10.20%	5.35%
Alpha Metallurgical Resources	-2.09%	-2.88%	-1.95%

Earnings & Valuation

This table compares Norsk Hydro ASA and Alpha Metallurgical Resources”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Norsk Hydro ASA	$19.41 billion	0.75	$538.47 million	$0.52	14.15
Alpha Metallurgical Resources	$2.96 billion	0.80	$187.58 million	($3.56)	-51.86

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

Summary

Norsk Hydro ASA beats Alpha Metallurgical Resources on 10 of the 14 factors compared between the two stocks.

About Norsk Hydro ASA

Norsk Hydro ASA engages in the power production, bauxite extraction, alumina refining, aluminium smelting, and recycling activities; and provision of extruded solutions worldwide. It operates through Hydro Bauxite & Alumina, Hydro Aluminium Metal, Hydro Metal Markets, Hydro Extrusions, and Hydro Energy segments. The Hydro Bauxite & Alumina segment engages in bauxite mining activities, production of alumina, and related commercial activities, primarily the sale of alumina. The Hydro Aluminium Metal segment is involved in the primary aluminum production casting activities. This segment principally offers extrusion ingots, foundry alloys, and sheet and standard ingots. The Metal Markets segment sells products from the company’s primary metal plants; operates recyclers; and trades in physical and financial metals. The Hydro Extrusions segment offers extrusion profiles, building systems, and precision tubing products for construction, automotive and heating, and ventilation and air conditioning sectors, as well as operates recycling facilities. The Hydro Energy segment engages in the trading and wholesale business in Brazil; energy sourcing operations; and operation of power stations in Norway, as well as renewable energy production, such as wind and solar, battery materials, and green hydrogen. Norsk Hydro ASA was founded in 1905 and is headquartered in Oslo, Norway.

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.