Comparing American Resources (NASDAQ:AREC) and NioCorp Developments (NASDAQ:NB)

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

Volatility and Risk

NioCorp Developments has a beta of -0.14, suggesting that its share price is 114% less volatile than the S&P 500. Comparatively, American Resources has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500.

Institutional & Insider Ownership

4.0% of NioCorp Developments shares are owned by institutional investors. Comparatively, 9.3% of American Resources shares are owned by institutional investors. 19.1% of NioCorp Developments shares are owned by company insiders. Comparatively, 16.8% of American Resources shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NioCorp Developments	N/A	-25.73%	-21.10%
American Resources	-27,532.48%	N/A	-19.65%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NioCorp Developments	N/A	N/A	-$17.41 million	($0.81)	-6.59
American Resources	$145,026.00	2,111.39	-$39.25 million	($0.41)	-7.37

NioCorp Developments has higher earnings, but lower revenue than American Resources. American 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.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for NioCorp Developments and American Resources, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NioCorp Developments	1	0	3	1	2.80
American Resources	1	0	4	0	2.60

NioCorp Developments presently has a consensus price target of $8.32, suggesting a potential upside of 55.74%. American Resources has a consensus price target of $6.00, suggesting a potential upside of 98.68%. Given American Resources’ higher possible upside, analysts plainly believe American Resources is more favorable than NioCorp Developments.

Summary

American Resources beats NioCorp Developments on 8 of the 14 factors compared between the two stocks.

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.

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.