Financial Comparison: First Quantum Minerals (OTCMKTS:FQVLF) vs. Lithium Americas (Argentina) (NYSE:LAAC)

First Quantum Minerals (OTCMKTS:FQVLFGet Free Report) and Lithium Americas (Argentina) (NYSE:LAACGet Free Report) are both basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.

Insider & Institutional Ownership

49.2% of Lithium Americas (Argentina) shares are owned by institutional investors. 19.8% of Lithium Americas (Argentina) shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

First Quantum Minerals has a beta of 1.75, indicating that its stock price is 75% more volatile than the S&P 500. Comparatively, Lithium Americas (Argentina) has a beta of 1.33, indicating that its stock price is 33% more volatile than the S&P 500.

Valuation & Earnings

This table compares First Quantum Minerals 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
First Quantum Minerals $6.46 billion 1.75 -$954.00 million ($1.70) -7.99
Lithium Americas (Argentina) N/A N/A $1.29 billion $7.99 0.57

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

Profitability

This table compares First Quantum Minerals and Lithium Americas (Argentina)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
First Quantum Minerals -20.02% 0.26% 0.13%
Lithium Americas (Argentina) N/A 3.09% 2.51%

Analyst Ratings

This is a summary of recent recommendations for First Quantum Minerals and Lithium Americas (Argentina), as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First Quantum Minerals 0 5 2 0 2.29
Lithium Americas (Argentina) 0 2 3 0 2.60

First Quantum Minerals currently has a consensus price target of $27.61, suggesting a potential upside of 103.17%. Lithium Americas (Argentina) has a consensus price target of $9.40, suggesting a potential upside of 104.79%. Given Lithium Americas (Argentina)’s stronger consensus rating and higher probable upside, analysts clearly believe Lithium Americas (Argentina) is more favorable than First Quantum Minerals.

Summary

Lithium Americas (Argentina) beats First Quantum Minerals on 11 of the 13 factors compared between the two stocks.

About First Quantum Minerals

(Get Free Report)

First Quantum Minerals Ltd., together with its subsidiaries, engages in the exploration, development, and production of mineral properties. It primarily explores for copper, nickel, pyrite, silver, gold, and zinc ores, as well as produces acid. The company has operating mines located in Zambia, Panama, Finland, Turkey, Spain, Australia, and Mauritania, as well as a development project in Zambia. It is exploring the Taca Taca copper-gold-molybdenum project in Argentina, as well as the Haquira copper deposit in Peru. The company was formerly known as First Quantum Ventures Ltd. and changed its name to First Quantum Minerals Ltd. in July 1996. The company is based in Vancouver, 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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