Alpha Metallurgical Resources (NYSE:AMR) and TMC the metals (NASDAQ:TMC) Financial Comparison

TMC the metals (NASDAQ:TMC) and Alpha Metallurgical Resources (NYSE:AMR) are both mid-cap basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, risk, valuation, analyst recommendations and institutional ownership.

Insider and Institutional Ownership

4.4% of TMC the metals shares are held by institutional investors. Comparatively, 84.3% of Alpha Metallurgical Resources shares are held by institutional investors. 27.6% of TMC the metals shares are held by company insiders. Comparatively, 16.0% of Alpha Metallurgical Resources shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

TMC the metals has a beta of 1.85, indicating that its share price is 85% more volatile than the S&P 500. Comparatively, Alpha Metallurgical Resources has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TMC the metals	N/A	-6,267.63%	-96.64%
Alpha Metallurgical Resources	-2.09%	-2.88%	-1.95%

Analyst Ratings

This is a summary of recent ratings and price targets for TMC the metals and Alpha Metallurgical Resources, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TMC the metals	1	1	2	0	2.25
Alpha Metallurgical Resources	1	1	1	0	2.00

TMC the metals presently has a consensus target price of $11.38, suggesting a potential upside of 50.76%. Alpha Metallurgical Resources has a consensus target price of $188.00, suggesting a potential downside of 14.72%. Given TMC the metals’ stronger consensus rating and higher possible upside, equities analysts clearly believe TMC the metals is more favorable than Alpha Metallurgical Resources.

Valuation and Earnings

This table compares TMC the metals and Alpha Metallurgical Resources”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TMC the metals	N/A	N/A	-$81.94 million	($0.77)	-9.80
Alpha Metallurgical Resources	$2.96 billion	0.96	$187.58 million	($3.56)	-61.92

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

Summary

TMC the metals beats Alpha Metallurgical Resources on 8 of the 13 factors compared between the two stocks.

About TMC the metals

TMC the metals company Inc., a deep-sea minerals exploration company, focuses on the collection, processing, and refining of polymetallic nodules found on the seafloor in California. It primarily explores for nickel, cobalt, copper, and manganese products. The company holds exploration and commercial rights in three polymetallic nodule contract areas in the Clarion Clipperton Zone of the Pacific Ocean. Its products are used in electric vehicles (EV), renewable energy storage markets, EV wiring, energy transmission, manganese alloy production required for steel production, and other applications. The company was formerly known as Sustainable Opportunities Acquisition Corporation and changed its name to TMC the metals company Inc. TMC the metals company Inc. was founded in 2011 and is based in Vancouver, 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.