Analyzing Alpha Metallurgical Resources (NYSE:AMR) & Tredegar (NYSE:TG)
by Sarita Garza · The Markets DailyAlpha Metallurgical Resources (NYSE:AMR – Get Free Report) and Tredegar (NYSE:TG – Get Free Report) are both materials companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.
Risk & Volatility
Alpha Metallurgical Resources has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500. Comparatively, Tredegar has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500.
Insider & Institutional Ownership
84.3% of Alpha Metallurgical Resources shares are held by institutional investors. Comparatively, 79.2% of Tredegar shares are held by institutional investors. 18.2% of Alpha Metallurgical Resources shares are held by insiders. Comparatively, 2.5% of Tredegar shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Analyst Ratings
This is a breakdown of current recommendations for Alpha Metallurgical Resources and Tredegar, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Alpha Metallurgical Resources | 2 | 5 | 0 | 0 | 1.71 |
| Tredegar | 0 | 1 | 0 | 0 | 2.00 |
Alpha Metallurgical Resources presently has a consensus target price of $176.00, indicating a potential upside of 1.07%. Given Alpha Metallurgical Resources’ higher probable upside, analysts clearly believe Alpha Metallurgical Resources is more favorable than Tredegar.
Earnings & Valuation
This table compares Alpha Metallurgical Resources and Tredegar”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Alpha Metallurgical Resources | $2.13 billion | 1.04 | -$61.69 million | ($3.58) | -48.64 |
| Tredegar | $781.74 million | 0.31 | $33.48 million | $0.96 | 7.13 |
Tredegar has lower revenue, but higher earnings than Alpha Metallurgical Resources. Alpha Metallurgical Resources is trading at a lower price-to-earnings ratio than Tredegar, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Alpha Metallurgical Resources and Tredegar’s 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% |
| Tredegar | 4.26% | 14.52% | 8.07% |
Summary
Tredegar 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 Tredegar
Tredegar Corporation manufactures and sells aluminum extrusions, polyethylene (PE) films, and plastic and polyester films in the United States and internationally. It operates through three segments: Aluminum Extrusions, PE Films, and Flexible Packaging Films. The Aluminum Extrusions segment produces soft and medium strength alloyed aluminum extrusions, custom fabricated and finished aluminum extrusions for the building and construction, automotive and transportation, consumer durables, machinery and equipment, electrical and renewable energy, and distribution markets; and manufactures mill, anodized, and painted and alloyed aluminum extrusions to fabricators and distributors. The PE Films segment offers single- and multi-layer surface protection films for protecting components of flat panel and flexible displays that are used in televisions, monitors, notebooks, smart phones, tablets, e-readers, and digital signage under the UltraMask, ForceField, ForceField PEARL, Pearl A, and Obsidian brands. This segment provides polyethylene overwrap for bathroom tissue and paper towels, as well as polyethylene overwrap films and films for other markets. The Flexible Packaging Films segment offers polyester-based films for food packaging and industrial applications under the Ecophane and Sealphane brands. Tredegar Corporation was incorporated in 1988 and is headquartered in Richmond, Virginia.