Alpha Metallurgical Resources (NYSE:AMR) & Kinross Gold (NYSE:KGC) Critical Contrast

Kinross Gold (NYSE:KGC) and Alpha Metallurgical Resources (NYSE:AMR) are both materials companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, valuation, profitability, dividends and risk.

Analyst Ratings

This is a summary of current ratings for Kinross Gold and Alpha Metallurgical Resources, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kinross Gold	0	2	13	1	2.94
Alpha Metallurgical Resources	2	5	0	0	1.71

Kinross Gold currently has a consensus price target of $38.89, suggesting a potential upside of 65.52%. Alpha Metallurgical Resources has a consensus price target of $179.75, suggesting a potential downside of 4.81%. Given Kinross Gold’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Kinross Gold is more favorable than Alpha Metallurgical Resources.

Institutional & Insider Ownership

63.7% of Kinross Gold shares are held by institutional investors. Comparatively, 84.3% of Alpha Metallurgical Resources shares are held by institutional investors. 1.0% of Kinross Gold 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, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

Kinross Gold pays an annual dividend of $0.16 per share and has a dividend yield of 0.7%. Alpha Metallurgical Resources pays an annual dividend of $2.00 per share and has a dividend yield of 1.1%. Kinross Gold pays out 6.1% 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.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kinross Gold	$7.05 billion	3.95	$2.39 billion	$2.64	8.90
Alpha Metallurgical Resources	$2.07 billion	1.16	-$61.69 million	($3.58)	-52.75

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kinross Gold	37.52%	34.00%	23.84%
Alpha Metallurgical Resources	-2.23%	-2.99%	-2.01%

Risk and Volatility

Kinross Gold has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500. Comparatively, Alpha Metallurgical Resources has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500.

Summary

Kinross Gold beats Alpha Metallurgical Resources on 12 of the 17 factors compared between the two stocks.

About Kinross Gold

Kinross Gold Corporation, together with its subsidiaries, engages in the acquisition, exploration, and development of gold properties principally in the United States, Brazil, Chile, Canada, and Mauritania. The company operates the Fort Knox mine and the Manh Choh project in Alaska, as well as the Round Mountain and the Bald Mountain mines in Nevada, the United States; the Paracatu mine in Brazil; the La Coipa and the Lobo-Marte project in Chile; the Tasiast mine in Mauritania; and the Great Bear project in Canada. It is also involved in the extraction and processing of gold-containing ores; reclamation of gold mining properties; and production and sale of silver. Kinross Gold Corporation was founded in 1993 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.