Analyzing American Resources (NASDAQ:AREC) & Electra Battery Materials (NASDAQ:ELBM)

Electra Battery Materials (NASDAQ:ELBM) 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 profitability, valuation, earnings, analyst recommendations, dividends, institutional ownership and risk.

Volatility & Risk

Electra Battery Materials has a beta of 2.56, indicating that its share price is 156% more volatile than the S&P 500. Comparatively, American Resources has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500.

Institutional & Insider Ownership

32.9% of Electra Battery Materials shares are owned by institutional investors. Comparatively, 9.3% of American Resources shares are owned by institutional investors. 22.7% of Electra Battery Materials shares are owned by insiders. Comparatively, 16.8% of American Resources shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Electra Battery Materials and American Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Electra Battery Materials	N/A	-48.57%	-17.70%
American Resources	-27,532.48%	N/A	-19.65%

Earnings & Valuation

This table compares Electra Battery Materials 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
Electra Battery Materials	N/A	N/A	-$21.49 million	($1.27)	-0.79
American Resources	$145,026.00	2,048.47	-$39.25 million	($0.41)	-7.15

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

Analyst Ratings

This is a summary of recent ratings for Electra Battery Materials and American Resources, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Electra Battery Materials	1	0	1	0	2.00
American Resources	1	0	4	1	2.83

Electra Battery Materials presently has a consensus price target of $2.10, suggesting a potential upside of 110.27%. American Resources has a consensus price target of $6.00, suggesting a potential upside of 104.78%. Given Electra Battery Materials’ higher possible upside, equities analysts clearly believe Electra Battery Materials is more favorable than American Resources.

Summary

Electra Battery Materials beats American Resources on 8 of the 14 factors compared between the two stocks.

About Electra Battery Materials

Electra Battery Materials Corporation engages in the acquisition and exploration of resource properties in the United States and Canada. It primarily explores for cobalt and silver deposits. The company's flagship project is the Iron Creek cobalt-copper project located in Lemhi County, Idaho. It also operates a cobalt refinery for producing battery materials for the electric vehicle supply chain. The company was formerly known as First Cobalt Corp. and changed its name to Electra Battery Materials Corporation in December 2021. Electra Battery Materials Corporation was incorporated in 2011 and is headquartered in Toronto, 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.