Reviewing American Resources (NASDAQ:AREC) and Electra Battery Materials (NASDAQ:ELBM)

Electra Battery Materials (NASDAQ:ELBMGet Free Report) and American Resources (NASDAQ:ARECGet Free Report) are both small-cap basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, profitability, risk, analyst recommendations, dividends, earnings and institutional ownership.

Insider & Institutional Ownership

32.9% of Electra Battery Materials shares are owned by institutional investors. Comparatively, 9.3% of American Resources shares are owned by institutional investors. 22.7% of Electra Battery Materials shares are owned by company insiders. Comparatively, 16.8% of American Resources shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Electra Battery Materials and American Resources, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Electra Battery Materials 1 0 1 0 2.00
American Resources 1 0 4 1 2.83

Electra Battery Materials presently has a consensus target price of $2.10, indicating a potential upside of 105.88%. American Resources has a consensus target price of $6.00, indicating a potential upside of 100.00%. Given Electra Battery Materials’ higher possible upside, research analysts clearly believe Electra Battery Materials is more favorable than American Resources.

Earnings and Valuation

This table compares Electra Battery Materials and American Resources”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Electra Battery Materials N/A N/A -$21.49 million ($1.27) -0.80
American Resources $380,000.00 800.45 -$39.25 million ($0.41) -7.32

Electra Battery Materials has higher earnings, but lower revenue than American Resources. American Resources is trading at a lower price-to-earnings ratio than Electra Battery Materials, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Electra Battery Materials and American Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Electra Battery Materials N/A -48.57% -17.70%
American Resources -27,532.48% N/A -19.65%

Risk and Volatility

Electra Battery Materials has a beta of 2.56, suggesting that its share price is 156% more volatile than the S&P 500. Comparatively, American Resources has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500.

Summary

Electra Battery Materials beats American Resources on 8 of the 14 factors compared between the two stocks.

About Electra Battery Materials

(Get Free Report)

Electra Battery Materials Corporation engages in the acquisition and exploration of resource properties in the United States and Canada. It primarily explores for cobalt and silver deposits. The company's flagship project is the Iron Creek cobalt-copper project located in Lemhi County, Idaho. It also operates a cobalt refinery for producing battery materials for the electric vehicle supply chain. The company was formerly known as First Cobalt Corp. and changed its name to Electra Battery Materials Corporation in December 2021. Electra Battery Materials Corporation was incorporated in 2011 and is headquartered in Toronto, Canada.

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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