Contrasting Avalon Rare Metals (OTCMKTS:AVLNF) and Atlas Lithium (NASDAQ:ATLX)

Atlas Lithium (NASDAQ:ATLX) and Avalon Rare Metals (OTCMKTS:AVLNF) are both small-cap basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, earnings, dividends, profitability, valuation and risk.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Atlas Lithium and Avalon Rare Metals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atlas Lithium	1	0	1	0	2.00
Avalon Rare Metals	0	0	0	0	0.00

Atlas Lithium currently has a consensus target price of $12.00, indicating a potential upside of 106.54%. Given Atlas Lithium’s stronger consensus rating and higher possible upside, equities analysts clearly believe Atlas Lithium is more favorable than Avalon Rare Metals.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Atlas Lithium	-9,881.20%	-120.64%	-51.32%
Avalon Rare Metals	-5,445.83%	-4.41%	-4.05%

Volatility and Risk

Atlas Lithium has a beta of -0.75, suggesting that its stock price is 175% less volatile than the S&P 500. Comparatively, Avalon Rare Metals has a beta of -0.05, suggesting that its stock price is 105% less volatile than the S&P 500.

Institutional and Insider Ownership

18.4% of Atlas Lithium shares are held by institutional investors. 33.6% of Atlas Lithium shares are held by insiders. Comparatively, 2.4% of Avalon Rare Metals shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Atlas Lithium	$670,000.00	208.55	-$42.24 million	($1.93)	-3.01
Avalon Rare Metals	$40,000.00	1,252.31	-$3.72 million	N/A	N/A

Avalon Rare Metals has lower revenue, but higher earnings than Atlas Lithium.

About Atlas Lithium

Atlas Lithium Corporation operates as a mineral exploration and development company in Brazil. It operates the Minas Gerais lithium project that consists of 54 mineral rights covering an area of 59,275 acres located within the Brazilian Eastern Pegmatitic Province; and Northeastern Brazil lithium project, which consists of 7 mineral rights covering an area of 16,266 acres in the States of Paraíba and Rio Grande do Norte in northeastern Brazil. The company also owns 100% interests in various mining concessions for gold, diamond, and industrial sand; and early-stage projects and properties in other minerals, such as nickel, copper, rare earths, graphite, and titanium; as well as participates in iron and quartzite projects. The company was formerly known as Brazil Minerals, Inc. and changed its name to Atlas Lithium Corporation in October 2022. Atlas Lithium Corporation was founded in 2011 and is based in Belo Horizonte, Brazil.

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.