Head to Head Review: Minco Capital (OTCMKTS:MGHCF) & Avalon Advanced Materials (OTCMKTS:AVLNF)

Minco Capital (OTCMKTS:MGHCF) and Avalon Advanced Materials (OTCMKTS:AVLNF) are both small-cap basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, dividends, valuation, profitability, risk, earnings and institutional ownership.

Risk & Volatility

Minco Capital has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500. Comparatively, Avalon Advanced Materials has a beta of 1.56, indicating that its stock price is 56% more volatile than the S&P 500.

Earnings & Valuation

This table compares Minco Capital and Avalon Advanced Materials’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Minco Capital	N/A	N/A	-$1.04 million	($0.04)	-1.04
Avalon Advanced Materials	$90,000.00	329.01	-$2.46 million	$0.01	5.25

Minco Capital has higher earnings, but lower revenue than Avalon Advanced Materials. Minco Capital is trading at a lower price-to-earnings ratio than Avalon Advanced Materials, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Minco Capital and Avalon Advanced Materials, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Minco Capital	0	0	0	0	N/A
Avalon Advanced Materials	0	0	0	0	N/A

Profitability

This table compares Minco Capital and Avalon Advanced Materials’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Minco Capital	N/A	-30.65%	-29.49%
Avalon Advanced Materials	1,416.94%	-2.58%	-2.47%

Summary

Avalon Advanced Materials beats Minco Capital on 7 of the 8 factors compared between the two stocks.

About Minco Capital

Minco Capital Corp., an investment company, focuses on investing in public and private companies and assets to generate income and achieve long-term capital appreciation. The company was formerly known as Minco Gold Corporation and changed its name to Minco Capital Corp. in February 2019. Minco Capital Corp. was incorporated in 1982 and is headquartered in Vancouver, Canada.

About Avalon Advanced Materials

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.