Contrasting Location Based Technologies (OTCMKTS:LBAS) & Sigma Lithium (NASDAQ:SGML)

Sigma Lithium (NASDAQ:SGML) and Location Based Technologies (OTCMKTS:LBAS) are both small-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, valuation and dividends.

Analyst Ratings

This is a summary of current ratings and target prices for Sigma Lithium and Location Based Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sigma Lithium	2	2	2	0	2.00
Location Based Technologies	0	0	0	0	0.00

Sigma Lithium presently has a consensus target price of $17.50, suggesting a potential upside of 69.08%. Given Sigma Lithium’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Sigma Lithium is more favorable than Location Based Technologies.

Profitability

This table compares Sigma Lithium and Location Based Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sigma Lithium	-24.13%	-35.97%	-9.94%
Location Based Technologies	N/A	N/A	N/A

Earnings and Valuation

This table compares Sigma Lithium and Location Based Technologies”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sigma Lithium	$152.36 million	7.57	-$51.07 million	($0.31)	-33.39
Location Based Technologies	N/A	N/A	N/A	N/A	N/A

Location Based Technologies has lower revenue, but higher earnings than Sigma Lithium.

Insider & Institutional Ownership

64.9% of Sigma Lithium shares are held by institutional investors. 48.6% of Sigma Lithium shares are held by insiders. Comparatively, 24.1% of Location Based Technologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Sigma Lithium has a beta of -0.06, suggesting that its stock price is 106% less volatile than the S&P 500. Comparatively, Location Based Technologies has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500.

Summary

Sigma Lithium beats Location Based Technologies on 6 of the 10 factors compared between the two stocks.

About Sigma Lithium

Sigma Lithium Corporation engages in the exploration and development of lithium deposits in Brazil. It holds a 100% interest in the Grota do Cirilo, Genipapo, Santa Clara, and São José properties comprising 29 mineral rights covering an area of approximately 185 square kilometers located in the Araçuaí and Itinga regions of the state of Minas Gerais, Brazil. It serves electric vehicle industries worldwide. The company was formerly known as Sigma Lithium Resources Corporation and changed its name to Sigma Lithium Corporation in July 2021. The company is headquartered in São Paulo, Brazil.

About Location Based Technologies

Location Based Technologies, Inc. designs, develops, and sells commercial and consumer wearable global positioning system (GPS) tracking solutions based on worldwide GSM network. It offers consumer products under the PocketFinder brand, including PocketFinder, PocketFinder luggage, PocketFinder Pet, and PocketFinder Vehicle that displays information to users regarding device location, longitude, latitude, altitude, heading or direction, speed, and 60 days of location history; and set alerts that will trigger an email, text, or push notification to notify them when their device exceeds a pre-determined parameter, such as speed, battery life, or entry/exit of a geo-zone. The company's PocketFinder Personal/Pet or luggage devices include small devices that are ideal for tracking or locating any mobile asset, person, pet, or valuable item; and PocketFinder Vehicle tracker is to be hardwired to any powered asset, such as vehicle, watercraft, or mobile generator to locate and track a mobile assets. It also provides commercial products under the LBT brand, including LBT-886 and LBT Vehicle Tracker. The company's LBT-886 comprises location device that enables a user to locate and track any person or mobile asset; and LBT Vehicle Tracker provides tracking features with capabilities, such as temperature, light and humidity monitoring, engine on/off monitoring, and starter interrupt engine capability or lone worker emergency alerts. It markets and sells its commercial products to small/midsize businesses, enterprise businesses, and governmental organizations that need to track vehicles, mobile equipment, portable assets, and workers through online retailers, as well as through its pocketfinder.com Website. The company was founded in 2006 and is based in Irvine, California.