Critical Survey: First Quantum Minerals (OTCMKTS:FQVLF) and Lithium Americas (Argentina) (NYSE:LAAC)

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

Institutional & Insider Ownership

49.2% of Lithium Americas (Argentina) shares are owned by institutional investors. 19.8% of Lithium Americas (Argentina) shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

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

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

First Quantum Minerals presently has a consensus target price of $27.61, suggesting a potential upside of 107.45%. Lithium Americas (Argentina) has a consensus target price of $9.40, suggesting a potential upside of 99.15%. Given First Quantum Minerals’ higher probable upside, equities analysts clearly believe First Quantum Minerals is more favorable than Lithium Americas (Argentina).

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
First Quantum Minerals $6.46 billion 1.72 -$954.00 million ($1.70) -7.83
Lithium Americas (Argentina) N/A N/A $1.29 billion $7.99 0.59

Lithium Americas (Argentina) has lower revenue, but higher earnings 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.

Risk and Volatility

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

Profitability

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

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

Summary

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

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.

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.

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