Alpha Metallurgical Resources (NYSE:AMR) versus Cameco (NYSE:CCJ) Head-To-Head Survey

Cameco (NYSE:CCJ) and Alpha Metallurgical Resources (NYSE:AMR) are both basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, valuation, risk, institutional ownership, profitability and dividends.

Insider and Institutional Ownership

70.2% of Cameco shares are held by institutional investors. Comparatively, 84.3% of Alpha Metallurgical Resources shares are held by institutional investors. 1.0% of Cameco shares are held by company insiders. Comparatively, 18.2% of Alpha Metallurgical Resources shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cameco	18.38%	11.05%	7.65%
Alpha Metallurgical Resources	-1.83%	-2.47%	-1.67%

Risk & Volatility

Cameco has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500. Comparatively, Alpha Metallurgical Resources has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cameco	$2.49 billion	16.74	$421.96 million	$1.08	88.69
Alpha Metallurgical Resources	$2.13 billion	0.90	-$61.69 million	($3.00)	-50.01

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

Analyst Recommendations

This is a breakdown of recent recommendations for Cameco and Alpha Metallurgical Resources, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cameco	0	5	12	0	2.71
Alpha Metallurgical Resources	2	4	0	0	1.67

Cameco currently has a consensus price target of $148.11, suggesting a potential upside of 54.63%. Alpha Metallurgical Resources has a consensus price target of $195.33, suggesting a potential upside of 30.19%. Given Cameco’s stronger consensus rating and higher possible upside, equities analysts plainly believe Cameco is more favorable than Alpha Metallurgical Resources.

Summary

Cameco beats Alpha Metallurgical Resources on 12 of the 14 factors compared between the two stocks.

About Cameco

Cameco Corporation provides uranium for the generation of electricity. It operates through Uranium, Fuel Services, Westinghouse segments. The Uranium segment is involved in the exploration for, mining, and milling, purchase, and sale of uranium concentrate. The Fuel Services segment engages in the refining, conversion, and fabrication of uranium concentrate, as well as the purchase and sale of conversion services. This segment also produces CANDU reactor fuel bundles and other reactor components. The company offers nuclear fuel processing services. The Westinghouse segment engages in the manufacture of nuclear reactor technology original equipment. This segment provides products and services to commercial utilities and government agencies; and outage and maintenance services, engineering support, instrumentation and controls equipment, plant modification, and components and parts to nuclear reactors. It sells its uranium and fuel services to nuclear utilities in the Americas, Europe, and Asia. Cameco Corporation was incorporated in 1987 and is headquartered in Saskatoon, Canada.

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.