Teck Resources (NYSE:TECK – Get Free Report) and American Resources (NASDAQ:AREC – Get Free Report) are both basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, risk, earnings and dividends.
Profitability
This table compares Teck Resources and American Resources’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Teck Resources | 11.93% | 4.14% | 2.41% |
| American Resources | -13,152.00% | N/A | -21.17% |
Valuation and Earnings
This table compares Teck Resources and American Resources”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Teck Resources | $10.48 billion | 1.94 | $296.30 million | $1.78 | 23.76 |
| American Resources | $330,304.00 | 1,250.78 | -$40.11 million | ($0.47) | -8.83 |
Teck Resources has higher revenue and earnings than American Resources. American Resources is trading at a lower price-to-earnings ratio than Teck Resources, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
78.1% of Teck Resources shares are held by institutional investors. Comparatively, 9.3% of American Resources shares are held by institutional investors. 0.1% of Teck Resources shares are held by insiders. Comparatively, 16.8% of American Resources shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Teck Resources and American Resources, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Teck Resources | 1 | 12 | 8 | 1 | 2.41 |
| American Resources | 1 | 0 | 3 | 1 | 2.80 |
Teck Resources presently has a consensus target price of $54.00, suggesting a potential upside of 27.69%. American Resources has a consensus target price of $5.50, suggesting a potential upside of 32.53%. Given American Resources’ stronger consensus rating and higher probable upside, analysts clearly believe American Resources is more favorable than Teck Resources.
Volatility & Risk
Teck Resources has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500. Comparatively, American Resources has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500.
Summary
Teck Resources beats American Resources on 9 of the 14 factors compared between the two stocks.
About Teck Resources
Teck Resources Limited engages in exploring for, acquiring, developing, and producing natural resources in Asia, Europe, and North America. The company operates through Steelmaking Coal, Copper, Zinc, and Energy segments. Its principal products include copper, zinc, steelmaking coal, and blended bitumen. The company also produces lead, silver, and molybdenum; and various specialty and other metals, chemicals, and fertilizers. In addition, it explores for gold. The company was formerly known as Teck Cominco Limited and changed its name to Teck Resources Limited in April 2009. The company was founded in 1913 and is headquartered in Vancouver, Canada.
About American Resources
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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