Comparing Alpha Metallurgical Resources (NYSE:AMR) & Agnico Eagle Mines (NYSE:AEM)

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

Profitability

This table compares Agnico Eagle Mines and Alpha Metallurgical Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Agnico Eagle Mines	40.44%	22.04%	16.22%
Alpha Metallurgical Resources	-2.23%	-2.99%	-2.01%

Dividends

Agnico Eagle Mines pays an annual dividend of $1.80 per share and has a dividend yield of 0.9%. Alpha Metallurgical Resources pays an annual dividend of $2.00 per share and has a dividend yield of 1.1%. Agnico Eagle Mines pays out 15.4% of its earnings in the form of a dividend. Alpha Metallurgical Resources pays out -55.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Alpha Metallurgical Resources is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

68.3% of Agnico Eagle Mines shares are held by institutional investors. Comparatively, 84.3% of Alpha Metallurgical Resources shares are held by institutional investors. 0.5% of Agnico Eagle Mines shares are held by insiders. Comparatively, 18.2% of Alpha Metallurgical Resources shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Agnico Eagle Mines and Alpha Metallurgical Resources, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Agnico Eagle Mines	0	5	12	0	2.71
Alpha Metallurgical Resources	2	5	0	0	1.71

Agnico Eagle Mines currently has a consensus target price of $227.15, indicating a potential upside of 16.86%. Alpha Metallurgical Resources has a consensus target price of $176.00, indicating a potential upside of 0.81%. Given Agnico Eagle Mines’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Agnico Eagle Mines is more favorable than Alpha Metallurgical Resources.

Volatility and Risk

Agnico Eagle Mines has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500. Comparatively, Alpha Metallurgical Resources has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500.

Valuation and Earnings

This table compares Agnico Eagle Mines 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
Agnico Eagle Mines	$11.91 billion	8.27	$4.46 billion	$11.69	16.63
Alpha Metallurgical Resources	$2.07 billion	1.07	-$61.69 million	($3.58)	-48.77

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

Summary

Agnico Eagle Mines beats Alpha Metallurgical Resources on 11 of the 16 factors compared between the two stocks.

About Agnico Eagle Mines

Agnico Eagle Mines Limited, a gold mining company, exploration, development, and production of precious metals. It explores for gold. The company's mines are located in Canada, Australia, Finland and Mexico, with exploration and development activities in Canada, Australia, Europe, Latin America, and the United States. Agnico Eagle Mines Limited was incorporated in 1953 and is headquartered in Toronto, 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.