American Lithium (NASDAQ:AMLI – Get Free Report) and NioCorp Developments (NASDAQ:NB – Get Free Report) are both small-cap basic materials companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, analyst recommendations, earnings and valuation.
Analyst Recommendations
This is a breakdown of current ratings and target prices for American Lithium and NioCorp Developments, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
American Lithium | 0 | 0 | 1 | 1 | 3.50 |
NioCorp Developments | 0 | 0 | 1 | 0 | 3.00 |
American Lithium currently has a consensus target price of $3.25, indicating a potential upside of 349.58%. NioCorp Developments has a consensus target price of $8.50, indicating a potential upside of 494.41%. Given NioCorp Developments’ higher possible upside, analysts clearly believe NioCorp Developments is more favorable than American Lithium.
Profitability
Net Margins | Return on Equity | Return on Assets | |
American Lithium | N/A | -17.25% | -16.87% |
NioCorp Developments | N/A | -8,973.12% | -206.20% |
Volatility & Risk
American Lithium has a beta of 1.47, indicating that its share price is 47% more volatile than the S&P 500. Comparatively, NioCorp Developments has a beta of -0.28, indicating that its share price is 128% less volatile than the S&P 500.
Valuation & Earnings
This table compares American Lithium and NioCorp Developments”s revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
American Lithium | N/A | N/A | -$29.55 million | ($0.10) | -7.23 |
NioCorp Developments | N/A | N/A | -$11.44 million | ($0.85) | -1.68 |
American Lithium is trading at a lower price-to-earnings ratio than NioCorp Developments, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
7.7% of American Lithium shares are owned by institutional investors. Comparatively, 4.0% of NioCorp Developments shares are owned by institutional investors. 18.7% of NioCorp Developments shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Summary
American Lithium beats NioCorp Developments on 7 of the 10 factors compared between the two stocks.
About American Lithium
American Lithium Corp., an exploration and development stage company, engages in the acquisition, exploration, and development of resource properties in the United States. It principally focuses on the TLC Lithium Project located in the town of Tonopah, Nevada; and the Falchani Lithium project and the Macusani Uranium project located in Puno, Peru. The company was formerly known as Menika Mining Ltd. and changed its name to American Lithium Corp. in April 2016. American Lithium Corp. was incorporated in 1974 and is based in Vancouver, Canada.
About NioCorp Developments
NioCorp Developments Ltd. engages in the exploration and development of mineral deposits in North America. It owns and develops the Elk Creek niobium/scandium/titanium project that owns one 226.43-acre parcel of land and associated mineral rights, and an additional 40 acres of mineral rights, as well as an optioned land package that covers an area of 1,396 acres located in Johnson County, southeast Nebraska. The company was formerly known as Quantum Rare Earth Developments Corp. and changed its name to NioCorp Developments Ltd. in March 2013. NioCorp Developments Ltd. was incorporated in 1987 and is headquartered in Centennial, Colorado.
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