Contrasting Alpha Metallurgical Resources (NYSE:AMR) & Hycroft Mining (NASDAQ:HYMC)

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alpha Metallurgical Resources	2	4	0	0	1.67
Hycroft Mining	1	0	0	0	1.00

Alpha Metallurgical Resources currently has a consensus price target of $196.00, suggesting a potential upside of 4.35%. Given Alpha Metallurgical Resources’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Alpha Metallurgical Resources is more favorable than Hycroft Mining.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Alpha Metallurgical Resources	-2.90%	-3.88%	-2.63%
Hycroft Mining	N/A	-80.76%	-20.72%

Valuation & Earnings

This table compares Alpha Metallurgical Resources and Hycroft Mining”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alpha Metallurgical Resources	$2.13 billion	1.13	-$61.69 million	($4.74)	-39.63
Hycroft Mining	N/A	N/A	-$40.66 million	($1.62)	-23.41

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

Insider & Institutional Ownership

84.3% of Alpha Metallurgical Resources shares are owned by institutional investors. Comparatively, 7.4% of Hycroft Mining shares are owned by institutional investors. 16.0% of Alpha Metallurgical Resources shares are owned by insiders. Comparatively, 1.3% of Hycroft Mining shares are owned 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 & Risk

Alpha Metallurgical Resources has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500. Comparatively, Hycroft Mining has a beta of 2.58, suggesting that its share price is 158% more volatile than the S&P 500.

Summary

Alpha Metallurgical Resources beats Hycroft Mining on 7 of the 12 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 Hycroft Mining

Hycroft Mining Holding Corporation, together with its subsidiaries, operates as a gold and silver development company in the United States. The company holds interests in the Hycroft mine that consists of 30 private parcels with patented claims comprising approximately 1,787 acres, and 3,247 unpatented mining claims that encompass approximately 62,298 acres located in the state of Nevada. Hycroft Mining Holding Corporation is based in Winnemucca, Nevada.