Head-To-Head Review: NioCorp Developments (NASDAQ:NB) and Alpha Metallurgical Resources (NYSE:AMR)

Alpha Metallurgical Resources (NYSE:AMR) and NioCorp Developments (NASDAQ:NB) are both basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, analyst recommendations, institutional ownership and dividends.

Profitability

This table compares Alpha Metallurgical Resources and NioCorp Developments’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alpha Metallurgical Resources	-2.09%	-2.88%	-1.95%
NioCorp Developments	N/A	-51.96%	-36.73%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Alpha Metallurgical Resources and NioCorp Developments, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alpha Metallurgical Resources	1	1	1	0	2.00
NioCorp Developments	1	0	3	0	2.50

Alpha Metallurgical Resources presently has a consensus price target of $160.50, suggesting a potential downside of 34.75%. NioCorp Developments has a consensus price target of $7.73, suggesting a potential upside of 21.16%. Given NioCorp Developments’ stronger consensus rating and higher probable upside, analysts plainly believe NioCorp Developments is more favorable than Alpha Metallurgical Resources.

Valuation & Earnings

This table compares Alpha Metallurgical Resources and NioCorp Developments”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alpha Metallurgical Resources	$2.23 billion	1.42	$187.58 million	($3.56)	-69.09
NioCorp Developments	N/A	N/A	-$17.41 million	($0.82)	-7.78

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

Volatility & Risk

Alpha Metallurgical Resources has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500. Comparatively, NioCorp Developments has a beta of -0.14, indicating that its stock price is 114% less volatile than the S&P 500.

Institutional and Insider Ownership

84.3% of Alpha Metallurgical Resources shares are owned by institutional investors. Comparatively, 4.0% of NioCorp Developments shares are owned by institutional investors. 16.0% of Alpha Metallurgical Resources shares are owned by insiders. Comparatively, 19.1% of NioCorp Developments shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

NioCorp Developments beats Alpha Metallurgical Resources on 7 of the 13 factors compared between the two stocks.

About Alpha Metallurgical Resources

Alpha Metallurgical Resources, Inc., a mining company, produces, processes, and sells met and thermal coal in Virginia and West Virginia. The company offers metallurgical coal products. It operates twenty-two active mines and nine coal preparation and load-out facilities. The company was formerly known as Contura Energy, Inc. and changed its name to Alpha Metallurgical Resources, Inc. in February 2021. Alpha Metallurgical Resources, Inc. was incorporated in 2016 and is headquartered in Bristol, Tennessee.

About NioCorp Developments

NioCorp Developments Ltd. engages in the exploration and development of mineral deposits in North America. It owns and develops the Elk Creek niobium/scandium/titanium project that owns one 226.43-acre parcel of land and associated mineral rights, and an additional 40 acres of mineral rights, as well as an optioned land package that covers an area of 1,396 acres located in Johnson County, southeast Nebraska. The company was formerly known as Quantum Rare Earth Developments Corp. and changed its name to NioCorp Developments Ltd. in March 2013. NioCorp Developments Ltd. was incorporated in 1987 and is headquartered in Centennial, Colorado.