Head to Head Analysis: Alpha Metallurgical Resources (NYSE:AMR) vs. Agnico Eagle Mines (NYSE:AEM)

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

Insider & Institutional Ownership

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

Analyst Recommendations

This is a summary of current ratings for Alpha Metallurgical Resources and Agnico Eagle Mines, as reported by MarketBeat.

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

Alpha Metallurgical Resources currently has a consensus price target of $176.00, suggesting a potential upside of 2.37%. Agnico Eagle Mines has a consensus price target of $227.15, suggesting a potential upside of 23.54%. Given Agnico Eagle Mines’ stronger consensus rating and higher probable upside, analysts clearly believe Agnico Eagle Mines is more favorable than Alpha Metallurgical Resources.

Profitability

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

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

Dividends

Alpha Metallurgical Resources pays an annual dividend of $2.00 per share and has a dividend yield of 1.2%. Agnico Eagle Mines pays an annual dividend of $1.80 per share and has a dividend yield of 1.0%. Alpha Metallurgical Resources pays out -55.9% of its earnings in the form of a dividend. Agnico Eagle Mines pays out 15.4% 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 & Earnings

This table compares Alpha Metallurgical Resources and Agnico Eagle Mines”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alpha Metallurgical Resources	$2.07 billion	1.06	-$61.69 million	($3.58)	-48.02
Agnico Eagle Mines	$11.91 billion	7.83	$4.46 billion	$11.69	15.73

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.

Risk & Volatility

Alpha Metallurgical Resources has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500. Comparatively, Agnico Eagle Mines has a beta of 0.64, suggesting that its share price is 36% less volatile than the S&P 500.

Summary

Agnico Eagle Mines beats Alpha Metallurgical Resources on 11 of the 16 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 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.