Resources

Critical Analysis of US Resources (NASDAQ:AREC) and Hallador Energy (NASDAQ:HNRG)


American Resources (NASDAQ:AREC – Get Rating) and Hallador Energy (NASDAQ:HNRG – Get Rating) are both small-cap basic materials companies, but which is the better company? We will compare the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.

Institutional and Insider Ownership

8.3% of American Resources shares are held by institutional investors. By comparison, 23.7% of Hallador Energy’s shares are held by institutional investors. 27.9% of American Resources stock is held by company insiders. By comparison, 30.7% of Hallador Energy’s stock is held by insiders of the company. Strong institutional ownership indicates that hedge funds, endowments, and large fund managers believe a company is poised for long-term growth.

Analyst Notes

This is a breakdown of recent ratings and recommendations for American Resources and Hallador Energy, as reported by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
American Resources 0 0 1 0 3.00
Hallador Energy 0 0 0 0 N / A

American Resources currently has a consensus price target of $4.50, suggesting upside potential of 93.13%. Given American Resources’ possible higher upside, stock analysts clearly believe that American Resources is more favorable than Hallador Energy.

Volatility and risk

American Resources has a beta of -0.28, suggesting its stock price is 128% less volatile than the S&P 500. Comparatively, Hallador Energy has a beta of 0.79, suggesting its stock price is 21 % less volatile than the S&P 500.

Benefits and evaluation

This chart compares gross revenue, earnings per share, and valuation of American Resources and Hallador Energy.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
American Resources $7.76 million 19.74 -$32.50 million ($0.60) -3.88
Hallador Energy $247.67 million 0.56 -$3.75 million ($0.12) -37.58

Hallador Energy has higher revenues and profits than American Resources. Hallador Energy trades at a lower price-to-earnings ratio than American Resources, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares the net margins, return on equity and return on assets of American Resources and Hallador Energy.

Net margins Return on equity return on assets
American Resources -417.68% N / A -67.86%
Hallador Energy -1.52% -6.31% -3.15%

Summary

Hallador Energy beats American Resources on 8 of the 13 factors compared between the two stocks.

About US Resources (Get an assessment)

American Resources Corporation is involved in the mining, processing, transportation, distribution and sale of metallurgical coal to the steel industries. The company provides raw materials; and sells coal used in pulverized coal injections. It has a portfolio of operations located in Pike, Knott and Letcher counties in Kentucky; and Wyoming County, West Virginia. American Resources Corporation was founded in 2006 and is headquartered in Fishers, Indiana.

About Hallador Energy (Get an assessment)

Hallador Energy logoHallador Energy Company, through its subsidiaries, is engaged in the production of steam coal in the State of Indiana for the electric power generation industry. The Company owns the Oaktown Mine 1 and Oaktown Mine 2 underground mines in Oaktown, Indiana; and the Ace in the Hole mine located near Clay City, Indiana. It is also involved in gas exploration activities in Indiana. Hallador Energy Company was founded in 1949 and is headquartered in Terre Haute, Indiana.



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