Analyzing Alpha Metallurgical Resources (NYSE:AMR) and Coeur Mining (NYSE:CDE)

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Coeur Mining	$2.07 billion	8.85	$585.87 million	$1.17	15.23
Alpha Metallurgical Resources	$2.07 billion	1.02	-$61.69 million	($3.58)	-46.44

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Coeur Mining	26.82%	11.03%	7.57%
Alpha Metallurgical Resources	-2.23%	-2.99%	-2.01%

Volatility and Risk

Coeur Mining has a beta of 1.39, meaning that its share price is 39% more volatile than the S&P 500. Comparatively, Alpha Metallurgical Resources has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Coeur Mining and Alpha Metallurgical Resources, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Coeur Mining	0	4	9	1	2.79
Alpha Metallurgical Resources	2	5	0	0	1.71

Coeur Mining currently has a consensus target price of $25.50, indicating a potential upside of 43.07%. Alpha Metallurgical Resources has a consensus target price of $176.00, indicating a potential upside of 5.87%. Given Coeur Mining’s stronger consensus rating and higher possible upside, equities analysts plainly believe Coeur Mining is more favorable than Alpha Metallurgical Resources.

Dividends

Coeur Mining pays an annual dividend of $0.04 per share and has a dividend yield of 0.2%. Alpha Metallurgical Resources pays an annual dividend of $2.00 per share and has a dividend yield of 1.2%. Coeur Mining pays out 3.4% 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

63.0% of Coeur Mining shares are held by institutional investors. Comparatively, 84.3% of Alpha Metallurgical Resources shares are held by institutional investors. 0.9% of Coeur Mining shares are held by company insiders. Comparatively, 18.2% of Alpha Metallurgical Resources shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Coeur Mining beats Alpha Metallurgical Resources on 13 of the 17 factors compared between the two stocks.

About Coeur Mining

Coeur Mining, Inc. explores for precious metals in the United States, Canada, and Mexico. The company primarily explores for gold, silver, zinc, and lead properties. It markets and sells its concentrates to third-party customers, smelters, under off-take agreements. The company was formerly known as Coeur d'Alene Mines Corporation and changed its name to Coeur Mining, Inc. in May 2013. Coeur Mining, Inc. was incorporated in 1928 and is headquartered in Chicago, Illinois.

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.