South32 (OTCMKTS:SOUHY – Get Free Report) and Lithium (OTCMKTS:LTUM – Get Free Report) are both basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, earnings, dividends, profitability and risk.
Risk & Volatility
South32 has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500. Comparatively, Lithium has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500.
Valuation & Earnings
This table compares South32 and Lithium’s gross revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
South32 | $7.43 billion | 1.39 | -$173.00 million | N/A | N/A |
Lithium | N/A | N/A | -$620,000.00 | N/A | N/A |
Analyst Ratings
This is a breakdown of current recommendations and price targets for South32 and Lithium, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
South32 | 0 | 2 | 3 | 0 | 2.60 |
Lithium | 0 | 0 | 0 | 0 | N/A |
Profitability
This table compares South32 and Lithium’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
South32 | N/A | N/A | N/A |
Lithium | N/A | -32.82% | -15.31% |
Institutional & Insider Ownership
0.1% of South32 shares are held by institutional investors. 0.2% of South32 shares are held by insiders. Comparatively, 4.8% of Lithium shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
South32 beats Lithium on 6 of the 8 factors compared between the two stocks.
About South32
South32 Limited operates as a diversified metals and mining company in Australia, India, China, Japan, the Middle East, Mozambique, the Netherlands, Brazil, Russia, South Africa, South Korea, the United States, and internationally. The company operates through Worsley Alumina, Brazil Alumina, Brazil Aluminium, Hillside Aluminium, Mozal Aluminium, Sierra Gorda, Cannington, Hermosa, Cerro Matoso, Illawarra Metallurgical Coal, Australia Manganese, and South Africa Manganese segments. It has a portfolio of assets producing bauxite, alumina, aluminum, copper, silver, lead, zinc, nickel, metallurgical coal, manganese, ferronickel, and other base metals. The company also exports its products. South32 Limited was incorporated in 2000 and is headquartered in Perth, Australia.
About Lithium
Lithium Corporation, an exploration stage mining company, engages in the identification, acquisition, and exploration of metals and minerals in Nevada and British Columbia. It explores for lithium/boron/potassium, graphite, gold, and silver deposits, as well as titanium and rare earth elements. The company was formerly known as Utalk Communications Inc. and changed its name to Lithium Corporation in September 2009. Lithium Corporation was incorporated in 2007 and is headquartered in Elko, Nevada.
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