Head-To-Head Survey: Lithium Americas (NYSE:LAC) & Lundin Mining (NYSE:LUNMF)

Lithium Americas (NYSE:LAC) and Lundin Mining (OTCMKTS:LUNMF) are both basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, valuation, risk, earnings and profitability.

Volatility and Risk

Lithium Americas has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500. Comparatively, Lundin Mining has a beta of 2.01, meaning that its share price is 101% more volatile than the S&P 500.

Profitability

This table compares Lithium Americas and Lundin Mining’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lithium Americas -560.33% -26.10% -20.25%
Lundin Mining 5.07% 1.90% 1.32%

Institutional and Insider Ownership

5.3% of Lithium Americas shares are owned by institutional investors. Comparatively, 0.3% of Lundin Mining shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Dividends

Lundin Mining pays an annual dividend of $0.09 per share and has a dividend yield of 1.9%. Lithium Americas does not pay a dividend.

Valuation & Earnings

This table compares Lithium Americas and Lundin Mining’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lithium Americas $4.84 million 65.63 -$28.27 million ($0.26) -13.73
Lundin Mining $1.73 billion 1.99 $195.85 million N/A N/A

Lundin Mining has higher revenue and earnings than Lithium Americas.

Analyst Ratings

This is a summary of current ratings and recommmendations for Lithium Americas and Lundin Mining, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lithium Americas 0 1 2 0 2.67
Lundin Mining 0 4 6 0 2.60

Summary

Lundin Mining beats Lithium Americas on 9 of the 12 factors compared between the two stocks.

Lithium Americas Company Profile

Lithium Americas Corp. operates as a resource company in the United States. The company explores for lithium deposits. It primarily holds interests in the Cauchari-Olaroz Project located in Jujuy province of Argentina; and owns a 100% interest in the Thacker Pass lithium project located in Nevada. The company also manufactures and sells organoclay products that are used in complex oil and gas drilling and other applications. The company was formerly known as Western Lithium USA Corporation and changed its name to Lithium Americas Corp. in March 2016. Lithium Americas Corp. was incorporated in 2007 and is headquartered in Vancouver, Canada.

Lundin Mining Company Profile

Lundin Mining Corporation, a diversified base metals mining company, engages in the exploration, development, and mining of mineral properties in Chile, the United States, Portugal, and Sweden. It primarily produces copper, zinc, and nickel, as well as gold, lead, silver, and other metals. The company holds 100% interests in the Eagle mine located in the United States; the Neves-Corvo mine located in Portugal; the Zinkgruvan mine located in Sweden, as well as 80% interest in the Candelaria and Ojos del Salado mining complex located in Chile; 24% interest in the Freeport Cobalt Oy business, which includes a cobalt refinery located in Kokkola, Finland; and the Chapada copper-gold mine located in Brazil. The company was formerly known as South Atlantic Ventures Ltd. and changed its name to Lundin Mining Corporation in August 2004. Lundin Mining Corporation was incorporated in 1994 and is headquartered in Toronto, Canada.

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