Financial Comparison: Avalon Advanced Materials (OTCMKTS:AVLNF) and First Quantum Minerals (OTCMKTS:FQVLF)

First Quantum Minerals (OTCMKTS:FQVLF) and Avalon Advanced Materials (OTCMKTS:AVLNF) are both basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, valuation and dividends.

Valuation and Earnings

This table compares First Quantum Minerals and Avalon Advanced Materials’ 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 $4.07 billion 1.35 -$57.00 million N/A N/A
Avalon Advanced Materials $40,000.00 315.61 -$2.55 million N/A N/A

Avalon Advanced Materials has lower revenue, but higher earnings than First Quantum Minerals.

Analyst Ratings

This is a summary of current recommendations and price targets for First Quantum Minerals and Avalon Advanced Materials, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First Quantum Minerals 0 5 8 0 2.62
Avalon Advanced Materials 0 0 0 0 N/A

First Quantum Minerals presently has a consensus price target of $12.20, suggesting a potential upside of 52.97%. Given First Quantum Minerals’ higher probable upside, analysts clearly believe First Quantum Minerals is more favorable than Avalon Advanced Materials.

Volatility & Risk

First Quantum Minerals has a beta of 2.62, suggesting that its stock price is 162% more volatile than the S&P 500. Comparatively, Avalon Advanced Materials has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500.

Insider and Institutional Ownership

0.6% of First Quantum Minerals shares are owned by institutional investors. Comparatively, 0.0% of Avalon Advanced Materials shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares First Quantum Minerals and Avalon Advanced Materials’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
First Quantum Minerals -3.92% 0.85% 0.37%
Avalon Advanced Materials -21.82% -2.04% -1.96%

Summary

First Quantum Minerals beats Avalon Advanced Materials on 8 of the 11 factors compared between the two stocks.

First Quantum Minerals Company Profile

First Quantum Minerals Ltd. engages in the exploration, development, and production of mineral properties. It primarily explores for copper, nickel, gold, and zinc ores, as well as produces acid. The company operates seven mines, including the Ravensthorpe nickel mine in Australia; the Kansanshi copper-gold mine and copper smelter in Zambia; the Sentinel copper operation in North Western Province of Zambia; the Guelb Moghrein copper-gold mine in Mauritania; the Çayeli copper-zinc mine in Turkey; the Las Cruces copper mine in Spain; and the Pyhäsalmi copper-zinc mine in Finland. It also has interests in copper and nickel projects at various stages of development located in Panama, Argentina, Peru, and Zambia. The company was formerly known as First Quantum Ventures Ltd. and changed its name to First Quantum Minerals Ltd. in July 1996. First Quantum Minerals Ltd. was founded in 1983 and is based in Vancouver, Canada.

Avalon Advanced Materials Company Profile

Avalon Advanced Materials Inc., together with its subsidiaries, engages in the exploration and development of mineral properties primarily in Canada. The company focuses on rare metals and minerals, including lithium, tantalum, niobium, cesium, indium, gallium, germanium, rare earth elements, yttrium, and zirconium, as well as tin. It focuses on the Nechalacho project, which comprises 5 contiguous mining leases covering an area of 10,449 acres and 3 claims covering an area of 4,597 acres located at Thor Lake in the Mackenzie Mining District of the Northwest Territories; the Separation Rapids Lithium project, which consists of 15 mineral claims and 1 mining claim lease covering an area of approximately 2,869 hectares located in the Paterson Lake Area of the Kenora Mining Division, Ontario; and the East Kemptville Tin-Indium project located northeast of Yarmouth in Yarmouth County, southwestern Nova Scotia. It also owns royalty interests in 2 exploration projects. The company was formerly known as Avalon Rare Metals Inc. and changed its name to Avalon Advanced Materials Inc. in February 2016. Avalon Advanced Materials Inc. was founded in 1991 and is headquartered in Toronto, Canada.

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