Financial Comparison: Lithium Americas (Argentina) (NYSE:LAAC) & Avalon Advanced Materials (OTCMKTS:AVLNF)

Avalon Advanced Materials (OTCMKTS:AVLNFGet Free Report) and Lithium Americas (Argentina) (NYSE:LAACGet Free Report) are both small-cap basic materials companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, profitability, earnings, institutional ownership and dividends.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Avalon Advanced Materials and Lithium Americas (Argentina), as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Avalon Advanced Materials 0 0 0 0 N/A
Lithium Americas (Argentina) 0 2 3 0 2.60

Lithium Americas (Argentina) has a consensus price target of $10.70, suggesting a potential upside of 91.24%. Given Lithium Americas (Argentina)’s higher probable upside, analysts plainly believe Lithium Americas (Argentina) is more favorable than Avalon Advanced Materials.

Valuation & Earnings

This table compares Avalon Advanced Materials and Lithium Americas (Argentina)’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Avalon Advanced Materials $90,000.00 365.89 -$2.46 million $0.01 5.84
Lithium Americas (Argentina) N/A N/A $1.29 billion $8.01 0.70

Lithium Americas (Argentina) has lower revenue, but higher earnings than Avalon Advanced Materials. Lithium Americas (Argentina) is trading at a lower price-to-earnings ratio than Avalon Advanced Materials, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Avalon Advanced Materials has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500. Comparatively, Lithium Americas (Argentina) has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500.

Institutional & Insider Ownership

49.2% of Lithium Americas (Argentina) shares are owned by institutional investors. 2.4% of Avalon Advanced Materials shares are owned by company insiders. Comparatively, 19.8% of Lithium Americas (Argentina) shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Avalon Advanced Materials and Lithium Americas (Argentina)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Avalon Advanced Materials 1,983.97% -1.79% -1.72%
Lithium Americas (Argentina) N/A 3.27% 2.66%

Summary

Lithium Americas (Argentina) beats Avalon Advanced Materials on 9 of the 12 factors compared between the two stocks.

About Avalon Advanced Materials

(Get Free Report)

Avalon Advanced Materials Inc., together with its subsidiaries, engages in the acquisition, exploration, evaluation, and development of rare metal and mineral properties primarily in Canada. The company focuses on exploring lithium, tantalum, cesium, indium, gallium, germanium, tin, yttrium, and zirconium deposits, as well as rare earth elements. Its flagship project is the 100% owned Separation Rapids Lithium Project consisting of nineteen mineral claims and one mining lease covering an area of approximately 4,414 hectares located in the Paterson Lake Area, Kenora Mining Division, Ontario. The company was formerly known as Avalon Rare Metals Inc. and changed its name to Avalon Advanced Materials Inc. in February 2016. Avalon Advanced Materials Inc. is headquartered in Toronto, Canada.

About Lithium Americas (Argentina)

(Get Free Report)

Lithium Americas (Argentina) Corp. operates as a resource company. The company explores for lithium deposits. The company owns interests in the Cauchari-Olaroz project located in Jujuy province of Argentina. It also has a pipeline of development and exploration stage projects, including the Pastos Grandes project and the Sal de la Puna project located in Salta Province in northwestern Argentina. Lithium Americas (Argentina) Corp. is headquartered in Vancouver, Canada.

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