Nexa Resources (NYSE:NEXA) versus American Lithium (OTCMKTS:LIACF) Head-To-Head Contrast

American Lithium (OTCMKTS:LIACF) and Nexa Resources (NYSE:NEXA) are both small-cap basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, profitability, dividends and analyst recommendations.

Valuation and Earnings

This table compares American Lithium and Nexa Resources”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	-$18.80 million	($0.11)	-4.67
Nexa Resources	$2.60 billion	0.39	-$289.35 million	($2.22)	-3.40

American Lithium has higher earnings, but lower revenue than Nexa Resources. American Lithium is trading at a lower price-to-earnings ratio than Nexa Resources, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

American Lithium has a beta of 1.48, suggesting that its stock price is 48% more volatile than the S&P 500. Comparatively, Nexa Resources has a beta of 1.53, suggesting that its stock price is 53% more volatile than the S&P 500.

Institutional & Insider Ownership

0.0% of American Lithium shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares American Lithium and Nexa Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Lithium	N/A	-16.28%	-15.96%
Nexa Resources	-10.30%	-4.16%	-1.24%

Analyst Ratings

This is a breakdown of recent ratings and price targets for American Lithium and Nexa Resources, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Lithium	0	0	0	0	N/A
Nexa Resources	3	1	1	0	1.60

Nexa Resources has a consensus target price of $7.30, indicating a potential downside of 3.31%. Given Nexa Resources’ higher probable upside, analysts clearly believe Nexa Resources is more favorable than American Lithium.

Summary

Nexa Resources beats American Lithium on 7 of the 11 factors compared between the two stocks.

About American Lithium

American Lithium Corp., an exploration stage company, engages in the identification, acquisition, exploration, and development of resource properties in the United States. It principally focuses on the TLC Claystones project covering an area of approximately 5,052 hectares 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 headquartered in Vancouver, Canada.

About Nexa Resources

Nexa Resources S.A., together with its subsidiaries, engages in the zinc mining and smelting business worldwide. The company operates in two segments, Mining and Smelting. It produces zinc, zamac, zinc oxide, and zincal, as well as by-products, such as copper, lead, silver, gold, copper sulfate, sulfuric acid, copper cementum, silver concentrate, slag aggregates, and cadmium/sponge deposits. The company owns and operates six polymetallic mines, including three located in the Central Andes of Peru; two located in the State of Minas Gerais in Brazil; and one located in the State of Mato Grosso in Brazil. It also owns and operates three zinc smelters comprising one located in Cajamarquilla in Peru; and two located in the State of Minas Gerais in Brazil, which recovers and produces metallic zinc, zinc oxide, and by-products, such as sulfuric acid. The company also exports its products. Its products are used in civil construction, transportation, energy, agriculture, health, and consumer goods industries. The company was formerly known as VM Holding S.A. and changed its name to Nexa Resources S.A. in September 2017. The company was founded in 1956 and is based in Luxembourg City, Luxembourg. Nexa Resources S.A. is a subsidiary of Votorantim S.A.