Head to Head Survey: American Resources (NASDAQ:AREC) and Lomiko Metals (OTCMKTS:LMRMF)

Lomiko Metals (OTCMKTS:LMRMF) and American Resources (NASDAQ:AREC) are both small-cap basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, institutional ownership, earnings, profitability and valuation.

Volatility & Risk

Lomiko Metals has a beta of 1.29, suggesting that its share price is 29% more 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 Lomiko Metals and American Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lomiko Metals	N/A	N/A	N/A
American Resources	-13,152.00%	N/A	-21.17%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Lomiko Metals and American Resources, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lomiko Metals	0	0	0	0	0.00
American Resources	1	0	3	1	2.80

American Resources has a consensus target price of $5.50, suggesting a potential upside of 32.05%. Given American Resources’ stronger consensus rating and higher probable upside, analysts clearly believe American Resources is more favorable than Lomiko Metals.

Earnings & Valuation

This table compares Lomiko Metals and American Resources”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lomiko Metals	N/A	N/A	-$1.15 million	($0.02)	-4.30
American Resources	$330,304.00	1,255.30	-$40.11 million	($0.47)	-8.86

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

Institutional and Insider Ownership

9.3% of American Resources shares are held by institutional investors. 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 company is poised for long-term growth.

Summary

American Resources beats Lomiko Metals on 7 of the 13 factors compared between the two stocks.

About Lomiko Metals

Lomiko Metals Inc. engages in the acquisition, exploration, and development of resource properties in Canada. It explores for graphite and lithium deposits. The company's flagship project is its 100% owned La Loutre graphite property located in Laurentian region of Quebec. The company was formerly known as Lomiko Resources Inc. and changed its name to Lomiko Metals Inc. in October 2008. Lomiko Metals Inc. was incorporated in 1987 and is based in Surrey, 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.