Head to Head Contrast: Avalon Rare Metals (OTCMKTS:AVLNF) & NioCorp Developments (NASDAQ:NB)

Avalon Rare Metals (OTCMKTS:AVLNF) and NioCorp Developments (NASDAQ:NB) are both small-cap basic materials companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, risk, earnings, valuation and institutional ownership.

Volatility and Risk

Avalon Rare Metals has a beta of 0.39, meaning that its stock price is 61% less volatile than the S&P 500. Comparatively, NioCorp Developments has a beta of 0.22, meaning that its stock price is 78% less volatile than the S&P 500.

Profitability

This table compares Avalon Rare Metals and NioCorp Developments’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Avalon Rare Metals	-11,117.69%	-4.47%	-4.11%
NioCorp Developments	N/A	-12.69%	-11.11%

Valuation & Earnings

This table compares Avalon Rare Metals and NioCorp Developments”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Avalon Rare Metals	$40,000.00	760.42	-$3.72 million	($0.01)	-3.64
NioCorp Developments	N/A	N/A	-$17.41 million	($0.68)	-7.65

Avalon Rare Metals has higher revenue and earnings than NioCorp Developments. NioCorp Developments is trading at a lower price-to-earnings ratio than Avalon Rare Metals, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings for Avalon Rare Metals and NioCorp Developments, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Avalon Rare Metals	0	1	0	0	2.00
NioCorp Developments	1	1	4	0	2.50

NioCorp Developments has a consensus price target of $8.93, suggesting a potential upside of 71.63%. Given NioCorp Developments’ stronger consensus rating and higher possible upside, analysts clearly believe NioCorp Developments is more favorable than Avalon Rare Metals.

Insider and Institutional Ownership

4.0% of NioCorp Developments shares are owned by institutional investors. 2.4% of Avalon Rare Metals shares are owned by company insiders. Comparatively, 8.2% of NioCorp Developments shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Avalon Rare Metals beats NioCorp Developments on 7 of the 13 factors compared between the two stocks.

About Avalon Rare Metals

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 NioCorp Developments

NioCorp Developments Ltd. engages in the exploration and development of mineral deposits in North America. It owns and develops the Elk Creek niobium/scandium/titanium project that owns one 226.43-acre parcel of land and associated mineral rights, and an additional 40 acres of mineral rights, as well as an optioned land package that covers an area of 1,396 acres located in Johnson County, southeast Nebraska. The company was formerly known as Quantum Rare Earth Developments Corp. and changed its name to NioCorp Developments Ltd. in March 2013. NioCorp Developments Ltd. was incorporated in 1987 and is headquartered in Centennial, Colorado.