Fortuna Mining (NYSE:FSM) versus American Resources (NASDAQ:AREC) Head-To-Head Contrast

Fortuna Mining (NYSE:FSM) and American Resources (NASDAQ:AREC) are both basic materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, institutional ownership, earnings and risk.

Insider & Institutional Ownership

33.8% of Fortuna Mining shares are held by institutional investors. Comparatively, 9.3% of American Resources shares are held by institutional investors. 1.0% of Fortuna Mining shares are held by company insiders. Comparatively, 16.8% of American Resources shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Fortuna Mining has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500. Comparatively, American Resources has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500.

Profitability

This table compares Fortuna Mining and American Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fortuna Mining	14.36%	12.74%	8.99%
American Resources	-13,152.00%	N/A	-21.17%

Earnings and Valuation

This table compares Fortuna Mining and American Resources”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fortuna Mining	$1.06 billion	2.58	$128.74 million	$0.50	17.83
American Resources	$330,304.00	947.77	-$40.11 million	($0.49)	-7.55

Fortuna Mining has higher revenue and earnings than American Resources. American 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.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Fortuna Mining and American Resources, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fortuna Mining	1	4	2	0	2.14
American Resources	1	0	1	1	2.67

Fortuna Mining currently has a consensus target price of $8.00, indicating a potential downside of 10.26%. American Resources has a consensus target price of $6.00, indicating a potential upside of 62.16%. Given American Resources’ stronger consensus rating and higher probable upside, analysts clearly believe American Resources is more favorable than Fortuna Mining.

Summary

Fortuna Mining beats American Resources on 9 of the 15 factors compared between the two stocks.

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.

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.