Reviewing Lithium Americas (NYSE:LAC) & IBC Advanced Alloys (OTCMKTS:IAALF)

IBC Advanced Alloys (OTCMKTS:IAALF) and Lithium Americas (NYSE:LAC) are both small-cap basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, dividends and valuation.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for IBC Advanced Alloys and Lithium Americas, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IBC Advanced Alloys	0	0	0	0	0.00
Lithium Americas	1	8	3	0	2.17

Lithium Americas has a consensus price target of $5.81, suggesting a potential upside of 27.89%. Given Lithium Americas’ stronger consensus rating and higher possible upside, analysts plainly believe Lithium Americas is more favorable than IBC Advanced Alloys.

Earnings and Valuation

This table compares IBC Advanced Alloys and Lithium Americas”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IBC Advanced Alloys	$17.76 million	0.88	-$3.41 million	($0.03)	-4.54
Lithium Americas	N/A	N/A	-$42.53 million	($1.05)	-4.33

IBC Advanced Alloys has higher revenue and earnings than Lithium Americas. IBC Advanced Alloys is trading at a lower price-to-earnings ratio than Lithium Americas, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

IBC Advanced Alloys has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500. Comparatively, Lithium Americas has a beta of 1.55, meaning that its stock price is 55% more volatile than the S&P 500.

Profitability

This table compares IBC Advanced Alloys and Lithium Americas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
IBC Advanced Alloys	-17.02%	-95.16%	-10.44%
Lithium Americas	N/A	-8.50%	-4.12%

Summary

Lithium Americas beats IBC Advanced Alloys on 8 of the 11 factors compared between the two stocks.

About IBC Advanced Alloys

IBC Advanced Alloys Corp. develops, produces, and sells specialty alloy products in the United States and internationally. The company operates through Copper Alloys and Engineered Materials segments. It offers various copper alloys as castings and forgings, such as beryllium copper, chrome copper, oxygen-free high conductivity copper, and aluminum bronze in the form of plates, blocks, rounds, discs, bars, rings, tubes, rods, and other custom forgings, as well as specialty copper alloy forgings for plastic mold tooling and resistance welding applications. The company also provides beryllium-aluminum castings, beryllium-aluminum alloys, beryllium-copper alloys, high-strength beryllium-copper casting alloys, high-conductivity beryllium-copper casting alloys, and beryllium-nickel casting alloys. In addition, it manufactures Thermal-Mold Super, a beryllium-free mold alloy of copper-nickel-silicon-chrome, as well as provides tolling services and consulting. It serves automotive, defense, resistance welding, electronics, industrial equipment, injection molding, foundry, aerospace, and oil and gas industries. The company was formerly known as International Beryllium Corporation and changed its name to IBC Advanced Alloys Corp. in March 2009. IBC Advanced Alloys Corp. is headquartered in Franklin, Indiana.

About Lithium Americas

Lithium Americas Corp. engages in the exploration and development of lithium properties in the United States and Canada. It holds a 100% interest in the Thacker Pass project located in northern Nevada, as well as investments in exploration properties in the United States and Canada. Lithium Americas Corp. was incorporated in 2023 and is headquartered in Vancouver, Canada.