China Natural Resources (NASDAQ:CHNR – Get Free Report) and American Resources (NASDAQ:AREC – Get Free Report) are both small-cap basic materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, risk, profitability and dividends.
Profitability
This table compares China Natural Resources and American Resources’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| China Natural Resources | N/A | N/A | N/A |
| American Resources | -27,532.48% | N/A | -19.65% |
Earnings and Valuation
This table compares China Natural Resources and American Resources”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| China Natural Resources | N/A | N/A | -$430,000.00 | N/A | N/A |
| American Resources | $380,000.00 | 725.74 | -$39.25 million | ($0.41) | -6.63 |
China Natural Resources has higher earnings, but lower revenue than American Resources.
Analyst Recommendations
This is a summary of current recommendations and price targets for China Natural Resources and American Resources, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| China Natural Resources | 1 | 0 | 0 | 0 | 1.00 |
| American Resources | 1 | 0 | 4 | 1 | 2.83 |
American Resources has a consensus target price of $6.00, suggesting a potential upside of 120.59%. Given American Resources’ stronger consensus rating and higher possible upside, analysts clearly believe American Resources is more favorable than China Natural Resources.
Volatility & Risk
China Natural Resources has a beta of 0.11, suggesting that its stock price is 89% less volatile than the S&P 500. Comparatively, American Resources has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500.
Insider and Institutional Ownership
0.0% of China Natural Resources shares are held by institutional investors. Comparatively, 9.3% of American Resources shares are held by institutional investors. 23.2% of China Natural Resources shares are held by insiders. Comparatively, 16.8% of American Resources shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Summary
American Resources beats China Natural Resources on 7 of the 11 factors compared between the two stocks.
About China Natural Resources
China Natural Resources, Inc., through its subsidiaries, engages in the exploration and mining of metal properties in the People's Republic of China. It explores for lead, silver, and other nonferrous metals. The company holds interest in the Moruogu Tong mine that covers an area of 7.81 square kilometers located in Bayannaoer City, Inner Mongolia. It also offers equipment for rural wastewater treatment; and engineering. The company was incorporated in 1993 and is headquartered in Sheung Wan, Hong Kong. China Natural Resources, Inc. operates as a subsidiary of Feishang Industrial Group Co., Ltd.
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.
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