Critical Contrast: American Lithium Minerals (OTCMKTS:AMLM) versus Cleveland-Cliffs (NYSE:CLF)

American Lithium Minerals (OTCMKTS:AMLM) and Cleveland-Cliffs (NYSE:CLF) are both basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, valuation and dividends.

Valuation and Earnings

This table compares American Lithium Minerals and Cleveland-Cliffs’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
American Lithium Minerals N/A N/A N/A N/A N/A
Cleveland-Cliffs $1.99 billion 3.57 $292.80 million $1.12 15.88

Cleveland-Cliffs has higher revenue and earnings than American Lithium Minerals.

Profitability

This table compares American Lithium Minerals and Cleveland-Cliffs’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Lithium Minerals N/A N/A N/A
Cleveland-Cliffs -3.38% -2.69% -0.35%

Institutional and Insider Ownership

67.6% of Cleveland-Cliffs shares are held by institutional investors. 1.8% of Cleveland-Cliffs shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

American Lithium Minerals has a beta of 2.46, suggesting that its share price is 146% more volatile than the S&P 500. Comparatively, Cleveland-Cliffs has a beta of 2.24, suggesting that its share price is 124% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for American Lithium Minerals and Cleveland-Cliffs, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Lithium Minerals 0 0 0 0 N/A
Cleveland-Cliffs 0 4 2 1 2.57

Cleveland-Cliffs has a consensus price target of $9.75, suggesting a potential downside of 45.16%. Given Cleveland-Cliffs’ higher possible upside, analysts plainly believe Cleveland-Cliffs is more favorable than American Lithium Minerals.

Summary

Cleveland-Cliffs beats American Lithium Minerals on 6 of the 10 factors compared between the two stocks.

American Lithium Minerals Company Profile

American Lithium Minerals, Inc., an exploration stage company, engages in the acquisition and exploration of mining properties in the United States. The company primarily focuses on investigating prospective lithium opportunities. It holds an option to acquire a 100% interest in 88 unpatented mining claims in Esmeralda County, Nevada. The company was formerly known as Nugget Resources Inc. and changed its name to American Lithium Minerals, Inc. in March 2009. American Lithium Minerals, Inc. was founded in 2005 and is based in Henderson, Nevada.

Cleveland-Cliffs Company Profile

Cleveland-Cliffs Inc. operates as an iron ore mining company in the United States. The company operates four iron ore mines in Michigan and Minnesota. It sells its products to integrated steel companies and steel producers in the United States and the Asia Pacific. The company was formerly known as Cliffs Natural Resources Inc. and changed its name to Cleveland-Cliffs Inc. in August 2017. Cleveland-Cliffs Inc. was founded in 1847 and is headquartered in Cleveland, Ohio.

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