Contrasting Paladin Energy (OTCMKTS:PALAF) & Alpha Metallurgical Resources (NYSE:AMR)

Alpha Metallurgical Resources (NYSE:AMR) and Paladin Energy (OTCMKTS:PALAF) are both mid-cap basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.

Earnings and Valuation

This table compares Alpha Metallurgical Resources and Paladin Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alpha Metallurgical Resources	$2.96 billion	0.76	$187.58 million	($3.56)	-49.17
Paladin Energy	$177.68 million	24.88	-$44.64 million	($0.11)	-89.45

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

Profitability

This table compares Alpha Metallurgical Resources and Paladin Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alpha Metallurgical Resources	-2.09%	-2.88%	-1.95%
Paladin Energy	-16.42%	-4.89%	-3.48%

Institutional and Insider Ownership

84.3% of Alpha Metallurgical Resources shares are held by institutional investors. Comparatively, 0.0% of Paladin Energy shares are held by institutional investors. 16.0% of Alpha Metallurgical Resources shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Alpha Metallurgical Resources has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500. Comparatively, Paladin Energy has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for Alpha Metallurgical Resources and Paladin Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alpha Metallurgical Resources	2	3	0	0	1.60
Paladin Energy	0	3	0	0	2.00

Alpha Metallurgical Resources currently has a consensus target price of $204.00, suggesting a potential upside of 16.53%. Paladin Energy has a consensus target price of $9.05, suggesting a potential downside of 8.03%. Given Alpha Metallurgical Resources’ higher possible upside, equities research analysts clearly believe Alpha Metallurgical Resources is more favorable than Paladin Energy.

Summary

Alpha Metallurgical Resources beats Paladin Energy on 9 of the 13 factors compared between the two stocks.

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.

About Paladin Energy

Paladin Energy Ltd develops, explores for, owns, and operates uranium mines in Australia, Canada, and Africa. The company operates through Exploration, Namibia, and Australia segments. Its flagship project is the Langer Heinrich mine located in the Namib Desert in Namibia. The company was formerly known as Paladin Resources Ltd and changed its name to Paladin Energy Limited in November 2007. Paladin Energy Ltd was incorporated in 1993 and is headquartered in Perth, Australia.