Reviewing Kinross Gold (NYSE:KGC) and American Resources (NASDAQ:AREC)

American Resources (NASDAQ:AREC) and Kinross Gold (NYSE:KGC) are both materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.

Valuation and Earnings

This table compares American Resources and Kinross Gold”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Resources	$380,000.00	515.14	$55.41 million	($0.41)	-4.46
Kinross Gold	$8.47 billion	3.36	$2.39 billion	$2.64	9.11

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

Profitability

This table compares American Resources and Kinross Gold’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Resources	N/A	N/A	-8.48%
Kinross Gold	37.52%	34.00%	23.84%

Institutional and Insider Ownership

9.3% of American Resources shares are held by institutional investors. Comparatively, 63.7% of Kinross Gold shares are held by institutional investors. 1.8% of American Resources shares are held by company insiders. Comparatively, 1.0% of Kinross Gold shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

American Resources has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500. Comparatively, Kinross Gold has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for American Resources and Kinross Gold, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Resources	1	0	4	0	2.60
Kinross Gold	0	3	13	1	2.88

American Resources currently has a consensus target price of $6.00, suggesting a potential upside of 227.87%. Kinross Gold has a consensus target price of $37.70, suggesting a potential upside of 56.71%. Given American Resources’ higher possible upside, equities research analysts clearly believe American Resources is more favorable than Kinross Gold.

Summary

Kinross Gold beats American Resources on 11 of the 15 factors compared between the two stocks.

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.

About Kinross Gold

Kinross Gold Corporation, together with its subsidiaries, engages in the acquisition, exploration, and development of gold properties principally in the United States, Brazil, Chile, Canada, and Mauritania. The company operates the Fort Knox mine and the Manh Choh project in Alaska, as well as the Round Mountain and the Bald Mountain mines in Nevada, the United States; the Paracatu mine in Brazil; the La Coipa and the Lobo-Marte project in Chile; the Tasiast mine in Mauritania; and the Great Bear project in Canada. It is also involved in the extraction and processing of gold-containing ores; reclamation of gold mining properties; and production and sale of silver. Kinross Gold Corporation was founded in 1993 and is headquartered in Toronto, Canada.