Analyzing Alpha Metallurgical Resources (NYSE:AMR) & Ero Copper (NYSE:ERO)

Ero Copper (NYSE:ERO) and Alpha Metallurgical Resources (NYSE:AMR) are both mid-cap materials companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, profitability, institutional ownership and earnings.

Volatility and Risk

Ero Copper has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500. Comparatively, Alpha Metallurgical Resources has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500.

Earnings and Valuation

This table compares Ero Copper and Alpha Metallurgical Resources”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ero Copper	$785.80 million	4.53	$263.72 million	$2.98	11.46
Alpha Metallurgical Resources	$2.13 billion	1.04	-$61.69 million	($3.58)	-48.64

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for Ero Copper and Alpha Metallurgical Resources, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ero Copper	0	11	5	2	2.50
Alpha Metallurgical Resources	2	5	0	0	1.71

Ero Copper currently has a consensus target price of $32.33, suggesting a potential downside of 5.36%. Alpha Metallurgical Resources has a consensus target price of $176.00, suggesting a potential upside of 1.07%. Given Alpha Metallurgical Resources’ higher probable upside, analysts clearly believe Alpha Metallurgical Resources is more favorable than Ero Copper.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ero Copper	29.79%	30.32%	15.17%
Alpha Metallurgical Resources	-2.23%	-2.99%	-2.01%

Insider and Institutional Ownership

71.3% of Ero Copper shares are owned by institutional investors. Comparatively, 84.3% of Alpha Metallurgical Resources shares are owned by institutional investors. 18.2% of Alpha Metallurgical Resources shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Ero Copper beats Alpha Metallurgical Resources on 11 of the 15 factors compared between the two stocks.

About Ero Copper

Ero Copper Corp. engages in the exploration, development, and production of mining projects in Brazil. The company is involved in the production and sale of copper concentrate from the Caraíba operations located in the Curaçá Valley, northeastern Bahia state, Brazil, as well as gold and silver by-products. It also holds 100% interests in the Tucumã project, a copper development project located within southeastern Pará state; and the Xavantina Operations located in Mato Grosso state. Ero Copper Corp. was incorporated in 2016 and is headquartered in Vancouver, Canada.

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.