Head to Head Analysis: Teck Resources (NYSE:TECK) and Avalon Rare Metals (OTCMKTS:AVLNF)

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

Volatility and Risk

Avalon Rare Metals has a beta of 0.19, meaning that its share price is 81% less volatile than the S&P 500. Comparatively, Teck Resources has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500.

Institutional & Insider Ownership

78.1% of Teck Resources shares are owned by institutional investors. 2.4% of Avalon Rare Metals shares are owned by company insiders. Comparatively, 0.1% of Teck Resources shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Avalon Rare Metals	-5,445.83%	-4.27%	-3.94%
Teck Resources	12.98%	5.90%	3.43%

Valuation and Earnings

This table compares Avalon Rare Metals and Teck Resources”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Avalon Rare Metals	$40,000.00	847.51	-$3.72 million	N/A	N/A
Teck Resources	$7.70 billion	3.33	$1.00 billion	$2.02	26.35

Teck Resources has higher revenue and earnings than Avalon Rare Metals.

Analyst Recommendations

This is a summary of recent recommendations for Avalon Rare Metals and Teck Resources, 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
Teck Resources	0	12	6	2	2.50

Teck Resources has a consensus target price of $57.00, indicating a potential upside of 7.11%. Given Teck Resources’ stronger consensus rating and higher probable upside, analysts clearly believe Teck Resources is more favorable than Avalon Rare Metals.

Summary

Teck Resources beats Avalon Rare Metals on 11 of the 13 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 Teck Resources

Teck Resources Limited engages in exploring for, acquiring, developing, and producing natural resources in Asia, Europe, and North America. The company operates through Steelmaking Coal, Copper, Zinc, and Energy segments. Its principal products include copper, zinc, steelmaking coal, and blended bitumen. The company also produces lead, silver, and molybdenum; and various specialty and other metals, chemicals, and fertilizers. In addition, it explores for gold. The company was formerly known as Teck Cominco Limited and changed its name to Teck Resources Limited in April 2009. The company was founded in 1913 and is headquartered in Vancouver, Canada.