Comparing Alpha Metallurgical Resources (NYSE:AMR) & TMC the metals (NASDAQ:TMC)

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

Institutional and Insider Ownership

84.3% of Alpha Metallurgical Resources shares are owned by institutional investors. Comparatively, 4.4% of TMC the metals shares are owned by institutional investors. 16.0% of Alpha Metallurgical Resources shares are owned by company insiders. Comparatively, 27.6% of TMC the metals shares are owned by company 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.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Alpha Metallurgical Resources and TMC the metals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alpha Metallurgical Resources	1	1	1	0	2.00
TMC the metals	1	1	2	0	2.25

Alpha Metallurgical Resources presently has a consensus price target of $188.00, indicating a potential downside of 14.72%. TMC the metals has a consensus price target of $11.38, indicating a potential upside of 50.76%. Given TMC the metals’ stronger consensus rating and higher probable upside, analysts clearly believe TMC the metals is more favorable than Alpha Metallurgical Resources.

Profitability

This table compares Alpha Metallurgical Resources and TMC the metals’ 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%
TMC the metals	N/A	-6,267.63%	-96.64%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alpha Metallurgical Resources	$2.96 billion	0.96	$187.58 million	($3.56)	-61.92
TMC the metals	N/A	N/A	-$81.94 million	($0.77)	-9.80

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

Volatility & Risk

Alpha Metallurgical Resources has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500. Comparatively, TMC the metals has a beta of 1.85, meaning that its share price is 85% more volatile than the S&P 500.

Summary

TMC the metals beats Alpha Metallurgical Resources on 8 of the 13 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 TMC the metals

TMC the metals company Inc., a deep-sea minerals exploration company, focuses on the collection, processing, and refining of polymetallic nodules found on the seafloor in California. It primarily explores for nickel, cobalt, copper, and manganese products. The company holds exploration and commercial rights in three polymetallic nodule contract areas in the Clarion Clipperton Zone of the Pacific Ocean. Its products are used in electric vehicles (EV), renewable energy storage markets, EV wiring, energy transmission, manganese alloy production required for steel production, and other applications. The company was formerly known as Sustainable Opportunities Acquisition Corporation and changed its name to TMC the metals company Inc. TMC the metals company Inc. was founded in 2011 and is based in Vancouver, Canada.