South32 (OTCMKTS:SOUHY) versus Lithium (OTCMKTS:LTUM) Critical Survey

South32 (OTCMKTS:SOUHY) and Lithium (OTCMKTS:LTUM) are both basic materials companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, risk, valuation, dividends, earnings and analyst recommendations.

Volatility & Risk

South32 has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500. Comparatively, Lithium has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500.

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%

Earnings and Valuation

This table compares South32 and Lithium’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
South32	$7.43 billion	1.46	-$173.00 million	N/A	N/A
Lithium	N/A	N/A	-$620,000.00	N/A	N/A

Lithium has lower revenue, but higher earnings than South32.

Analyst Recommendations

This is a summary of current recommendations and price targets for South32 and Lithium, as provided 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

Institutional & Insider Ownership

0.1% of South32 shares are owned by institutional investors. 0.2% of South32 shares are owned by company insiders. Comparatively, 4.8% of Lithium shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds 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.