Contrasting Fortuna Mining (NYSE:FSM) & Alpha Metallurgical Resources (NYSE:AMR)

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

Insider & Institutional Ownership

84.3% of Alpha Metallurgical Resources shares are owned by institutional investors. Comparatively, 33.8% of Fortuna Mining shares are owned by institutional investors. 16.0% of Alpha Metallurgical Resources shares are owned by company insiders. Comparatively, 1.0% of Fortuna Mining shares are owned 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.

Profitability

This table compares Alpha Metallurgical Resources and Fortuna Mining’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%
Fortuna Mining	21.48%	12.42%	8.88%

Risk & Volatility

Alpha Metallurgical Resources has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500. Comparatively, Fortuna Mining has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Alpha Metallurgical Resources and Fortuna Mining, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alpha Metallurgical Resources	1	1	1	0	2.00
Fortuna Mining	1	2	4	0	2.43

Alpha Metallurgical Resources presently has a consensus target price of $188.00, indicating a potential downside of 12.79%. Fortuna Mining has a consensus target price of $11.00, indicating a potential downside of 7.21%. Given Fortuna Mining’s stronger consensus rating and higher probable upside, analysts plainly believe Fortuna Mining is more favorable than Alpha Metallurgical Resources.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alpha Metallurgical Resources	$2.96 billion	0.94	$187.58 million	($3.56)	-60.55
Fortuna Mining	$1.06 billion	3.42	$128.74 million	$0.72	16.47

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

Summary

Fortuna Mining beats Alpha Metallurgical Resources on 10 of the 14 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 Fortuna Mining

Fortuna Mining Corp. engages in the precious and base metal mining in Argentina, Burkina Faso, Mexico, Peru, and Côte d’Ivoire. It operates through Mansfield, Sanu, Sango, Cuzcatlan, Bateas, and Corporate segments. The company primarily explores for silver, lead, zinc, and gold. Its flagship project is the Séguéla gold mine, which consists of approximately 62,000 hectares and is located in the Worodougou Region of the Woroba District, Côte d’Ivoire. The company was formerly known as Fortuna Silver Mines Inc. and changed its name to Fortuna Mining Corp. in June 2024. Fortuna Mining Corp. was incorporated in 1990 and is based in Vancouver, Canada.