Financial Analysis: Alpha Metallurgical Resources (NYSE:AMR) and Orbite Aluminae (OTCMKTS:EORBF)

Alpha Metallurgical Resources (NYSE:AMR) and Orbite Aluminae (OTCMKTS:EORBF) are both basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.

Earnings and Valuation

This table compares Alpha Metallurgical Resources and Orbite Aluminae”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alpha Metallurgical Resources	$2.96 billion	1.05	$187.58 million	($3.56)	-67.65
Orbite Aluminae	N/A	N/A	N/A	N/A	N/A

Alpha Metallurgical Resources has higher revenue and earnings than Orbite Aluminae.

Profitability

This table compares Alpha Metallurgical Resources and Orbite Aluminae’s 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%
Orbite Aluminae	N/A	N/A	N/A

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alpha Metallurgical Resources	1	1	1	0	2.00
Orbite Aluminae	0	0	0	0	0.00

Alpha Metallurgical Resources currently has a consensus price target of $160.50, suggesting a potential downside of 33.36%. Given Orbite Aluminae’s higher probable upside, analysts clearly believe Orbite Aluminae is more favorable than Alpha Metallurgical Resources.

Risk and Volatility

Alpha Metallurgical Resources has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500. Comparatively, Orbite Aluminae has a beta of -9.96, meaning that its share price is 1,096% less volatile than the S&P 500.

Institutional & Insider Ownership

84.3% of Alpha Metallurgical Resources shares are held by institutional investors. 16.0% of Alpha Metallurgical Resources shares are held 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

Alpha Metallurgical Resources beats Orbite Aluminae on 6 of the 10 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 Orbite Aluminae

Orbite Technologies Inc. operates as a clean technology based mineral-processing and resource development company in Canada. It produces high-purity alumina, silica, hematite, magnesium oxide, titanium oxide, smelter-grade alumina, and rare earth and rare metal oxides from various feedstocks, including red mud, fly-ash, aluminous clays, mine tailings, bauxite, and kaolin clay, as well as serpentine residues from chrysotile processing sites. The company owns 100% interest in 99 mineral claims totaling approximately 55 square kilometers, as well as 1 mining lease of 98.5 hectares at a site near Grande-Vallée, Québec. It also owns 100% interest in 138 mineral claims covering approximately 78.4 square kilometers at sites near Rimouski and Cap-Chat, Québec. The company was formerly known as Orbite Aluminae Inc. and changed its name to Orbite Technologies Inc. in June 2015. Orbite Technologies Inc. was incorporated in 1983 and is headquartered in Laval, Canada.