Head to Head Analysis: First Quantum Minerals (OTCMKTS:FQVLF) and Lithium Americas (Argentina) (NYSE:LAAC)

Lithium Americas (Argentina) (NYSE:LAACGet Free Report) and First Quantum Minerals (OTCMKTS:FQVLFGet Free Report) are both basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.

Profitability

This table compares Lithium Americas (Argentina) and First Quantum Minerals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lithium Americas (Argentina) N/A 3.09% 2.51%
First Quantum Minerals -20.02% 0.26% 0.13%

Valuation & Earnings

This table compares Lithium Americas (Argentina) and First Quantum Minerals’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lithium Americas (Argentina) N/A N/A $1.29 billion $7.99 0.56
First Quantum Minerals $6.46 billion 1.69 -$954.00 million ($1.70) -7.69

Lithium Americas (Argentina) has higher earnings, but lower revenue than First Quantum Minerals. First Quantum Minerals is trading at a lower price-to-earnings ratio than Lithium Americas (Argentina), indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations for Lithium Americas (Argentina) and First Quantum Minerals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lithium Americas (Argentina) 0 2 3 0 2.60
First Quantum Minerals 0 5 2 0 2.29

Lithium Americas (Argentina) currently has a consensus target price of $9.40, suggesting a potential upside of 110.29%. First Quantum Minerals has a consensus target price of $27.61, suggesting a potential upside of 111.26%. Given First Quantum Minerals’ higher possible upside, analysts clearly believe First Quantum Minerals is more favorable than Lithium Americas (Argentina).

Volatility & Risk

Lithium Americas (Argentina) has a beta of 1.33, indicating that its stock price is 33% more volatile than the S&P 500. Comparatively, First Quantum Minerals has a beta of 1.75, indicating that its stock price is 75% more volatile than the S&P 500.

Insider and Institutional Ownership

49.2% of Lithium Americas (Argentina) shares are held by institutional investors. 19.8% of Lithium Americas (Argentina) shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Lithium Americas (Argentina) beats First Quantum Minerals on 10 of the 13 factors compared between the two stocks.

About Lithium Americas (Argentina)

(Get Free Report)

Lithium Americas (Argentina) Corp. operates as a resource company. The company explores for lithium deposits. The company owns interests in the Cauchari-Olaroz project located in Jujuy province of Argentina. It also has a pipeline of development and exploration stage projects, including the Pastos Grandes project and the Sal de la Puna project located in Salta Province in northwestern Argentina. Lithium Americas (Argentina) Corp. is headquartered in Vancouver, Canada.

About First Quantum Minerals

(Get Free Report)

First Quantum Minerals Ltd., together with its subsidiaries, engages in the exploration, development, and production of mineral properties. It primarily explores for copper, nickel, pyrite, silver, gold, and zinc ores, as well as produces acid. The company has operating mines located in Zambia, Panama, Finland, Turkey, Spain, Australia, and Mauritania, as well as a development project in Zambia. It is exploring the Taca Taca copper-gold-molybdenum project in Argentina, as well as the Haquira copper deposit in Peru. The company was formerly known as First Quantum Ventures Ltd. and changed its name to First Quantum Minerals Ltd. in July 1996. The company is based in Vancouver, Canada.

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