Avalon Rare Metals (OTCMKTS:AVLNF) vs. Lynas (OTCMKTS:LYSDY) Financial Analysis

Avalon Rare Metals (OTCMKTS:AVLNF) and Lynas (OTCMKTS:LYSDY) are both basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, profitability, valuation, risk, analyst recommendations and institutional ownership.

Valuation & Earnings

This table compares Avalon Rare Metals and Lynas”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Avalon Rare Metals	$80,000.00	242.31	-$470,000.00	N/A	N/A
Lynas	$303.78 million	27.81	$55.42 million	N/A	N/A

Lynas has higher revenue and earnings than Avalon Rare Metals.

Profitability

This table compares Avalon Rare Metals and Lynas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Avalon Rare Metals	-12,472.97%	-5.08%	-4.70%
Lynas	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings and recommmendations for Avalon Rare Metals and Lynas, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Avalon Rare Metals	0	0	0	0	0.00
Lynas	0	2	0	0	2.00

Risk & Volatility

Avalon Rare Metals has a beta of 0.15, indicating that its stock price is 85% less volatile than the S&P 500. Comparatively, Lynas has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500.

Summary

Lynas beats Avalon Rare Metals on 7 of the 8 factors compared between the two stocks.

About Avalon Rare Metals

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 Lynas

Lynas Rare Earths Limited, together with its subsidiaries, engages in the exploration, development, mining, extraction, and processing of rare earth minerals in Australia and Malaysia. The company holds interests in the Mount Weld and Kalgoorlie projects in Western Australia. Its products include lanthanum, cerium, praseodymium, neodymium, samarium, europium, gadolinium, terbium, and dysprosium. The company also develops and operates advanced material processing and concentration plants, as well as offers corporate services. The company was formerly known as Lynas Corporation Limited and changed its name to Lynas Corporation Limited in November 2020. Lynas Rare Earths Limited was incorporated in 1983 and is based in Perth, Australia.