Critical Survey: Team (NYSE:TISI) & American Resources (NYSE:AREC)

Team (NYSE:TISI) and American Resources (NASDAQ:AREC) are both small-cap construction companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, earnings, institutional ownership, profitability and dividends.

Profitability

This table compares Team and American Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Team -2.75% -2.49% -1.09%
American Resources -82.11% N/A -57.10%

Valuation & Earnings

This table compares Team and American Resources’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Team $1.25 billion 0.43 -$63.15 million ($0.78) -22.94
American Resources $31.52 million 0.57 -$12.91 million N/A N/A

American Resources has lower revenue, but higher earnings than Team.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Team and American Resources, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Team 0 1 1 0 2.50
American Resources 0 0 1 0 3.00

Team currently has a consensus target price of $24.00, suggesting a potential upside of 34.15%. American Resources has a consensus target price of $1.50, suggesting a potential upside of 123.88%. Given American Resources’ stronger consensus rating and higher probable upside, analysts clearly believe American Resources is more favorable than Team.

Insider and Institutional Ownership

1.8% of American Resources shares are held by institutional investors. 2.5% of Team shares are held by company 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 Team on 6 of the 10 factors compared between the two stocks.

Team Company Profile

Team, Inc. provides specialty industrial services in the United States, Canada, Europe, and internationally. It operates through three segments: Inspection and Heat Treating Group (IHT), Mechanical Services Group (MS), and Quest Integrity Group (Quest Integrity). The IHT segment offers non-destructive evaluation and testing, radiographic testing, ultrasonic testing, magnetic particle inspection, liquid penetrant inspection, positive material identification, electromagnetic testing, alternating current field measurement, and eddy current testing services. It also provides long-range guided ultrasonic testing, phased array ultrasonic testing, tank inspection and management program, rope access, mechanical integrity, and field heat treating services. The MS segment offers on-stream and turnaround/project related environment services, such as leak repair, fugitive emissions control, hot tapping, field machining and technical bolting, valve repair, field welding, isolation and test plug, and valve insertion. The Quest Integrity segment provides furnace tube inspection system, in-line inspection, pipeline integrity management, engineering and condition assessment, and digital imaging services. The company serves petrochemical, refining, power, pipeline, steel, pulp, and paper industries; and municipalities, shipbuilding, original equipment manufacturers, and distributors, as well as engineering and construction firms. Team, Inc. was founded in 1973 and is headquartered in Sugar Land, Texas.

American Resources Company Profile

American Resources Corporation engages in the extraction, processing, transportation, and selling of metallurgical coal and pulverized coal injection for the steel making process. The company also provides high-BTU, low sulfur, and low moisture bituminous coal used for various industries, including industrial customers; and specialty products and thermal coal that is used for electricity generation. It operates 2 active mines, 1 idle mine, and coal preparation facilities located in Pike County, Kentucky; 1 active mine and 22 idled mining permits located in Knott County, Kentucky; 1 active underground coal mine, 1 coal preparation facilities, and 12 idled mining permits in Letcher and Knott County, Kentucky; and 2 idled underground mining permits located in Wyoming County, West Virginia. The company was formerly known as NGFC Equities, Inc. and changed its name to American Resources Corporation in February 2017. American Resources Corporation was founded in 2013 and is headquartered in Fishers, Indiana.

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