American Resources (NASDAQ:AREC) versus Surge Battery Metals (OTCMKTS:NILIF) Head to Head Contrast

American Resources (NASDAQ:AREC) and Surge Battery Metals (OTCMKTS:NILIF) are both small-cap basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, dividends, risk and earnings.

Earnings and Valuation

This table compares American Resources and Surge Battery Metals”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Resources	$380,000.00	715.07	-$39.25 million	($0.41)	-6.54
Surge Battery Metals	N/A	N/A	-$7.19 million	($0.04)	-14.02

Surge Battery Metals has lower revenue, but higher earnings than American Resources. Surge Battery Metals is trading at a lower price-to-earnings ratio than American Resources, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares American Resources and Surge Battery Metals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Resources	-27,532.48%	N/A	-19.65%
Surge Battery Metals	N/A	-59.46%	-57.62%

Volatility and Risk

American Resources has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500. Comparatively, Surge Battery Metals has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for American Resources and Surge Battery Metals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Resources	1	0	4	1	2.83
Surge Battery Metals	0	0	0	0	0.00

American Resources presently has a consensus target price of $6.00, suggesting a potential upside of 123.88%. Given American Resources’ stronger consensus rating and higher probable upside, equities research analysts clearly believe American Resources is more favorable than Surge Battery Metals.

Insider and Institutional Ownership

9.3% of American Resources shares are held by institutional investors. 16.8% of American Resources shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

American Resources beats Surge Battery Metals on 11 of the 14 factors compared between the two stocks.

About American Resources

American Resources Corporation, together with its subsidiaries, extracts, processes, transports, and sells metallurgical coal to the steel and industrial industries. It supplies raw materials; and sells coal used in pulverized coal injections. The company was founded in 2006 and is headquartered in Fishers, Indiana.

About Surge Battery Metals

Surge Battery Metals Inc., an exploration stage company, engages in the acquisition, exploration, and development of mineral properties in North America. It primarily explores for lithium and nickel. The company's flagship property is the 100% owned Nevada North lithium project consisting of 243 mineral claims located in Elko County, Nevada. The company was formerly known as Copper Creek Gold Corp. and changed its name to Surge Exploration Inc. in April 2018. Surge Battery Metals Inc. was incorporated in 1987 and is based in Vancouver, Canada.