Contrasting Avalon Advanced Materials (OTCMKTS:AVLNF) & Pure Energy Minerals (OTCMKTS:PEMIF)

Avalon Advanced Materials (OTCMKTS:AVLNF) and Pure Energy Minerals (OTCMKTS:PEMIF) are both small-cap basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, earnings, risk, dividends, analyst recommendations and profitability.

Earnings and Valuation

This table compares Avalon Advanced Materials and Pure Energy Minerals’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Avalon Advanced Materials	$90,000.00	369.65	-$2.46 million	$0.01	5.89
Pure Energy Minerals	$400,000.00	23.78	-$260,000.00	($0.01)	-28.00

Pure Energy Minerals has higher revenue and earnings than Avalon Advanced Materials. Pure Energy Minerals is trading at a lower price-to-earnings ratio than Avalon Advanced Materials, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations for Avalon Advanced Materials and Pure Energy Minerals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Avalon Advanced Materials	0	0	0	0	N/A
Pure Energy Minerals	0	0	0	0	N/A

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Avalon Advanced Materials	1,983.97%	-1.79%	-1.72%
Pure Energy Minerals	-113.48%	-1.76%	-1.75%

Risk & Volatility

Avalon Advanced Materials has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500. Comparatively, Pure Energy Minerals has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500.

Summary

Avalon Advanced Materials beats Pure Energy Minerals on 5 of the 9 factors compared between the two stocks.

About Avalon Advanced Materials

Avalon Advanced Materials Inc., together with its subsidiaries, engages in the acquisition, exploration, evaluation, and development of rare metal and mineral properties primarily in Canada. The company focuses on exploring lithium, tantalum, cesium, indium, gallium, germanium, tin, yttrium, and zirconium deposits, as well as rare earth elements. Its flagship project is the 100% owned Separation Rapids Lithium Project consisting of nineteen mineral claims and one mining lease covering an area of approximately 4,414 hectares located in the Paterson Lake Area, Kenora Mining Division, Ontario. 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. is headquartered in Toronto, Canada.

About Pure Energy Minerals

Pure Energy Minerals Limited acquires, explores, and develops mineral properties. Its primary project is the Clayton Valley lithium brine project located in Clayton Valley, Esmeralda County, Nevada. The company was formerly known as Harmony Gold Corp. and changed its name to Pure Energy Minerals Limited in October 2012. Pure Energy Minerals Limited is headquartered in Vancouver, Canada.