Analyzing American Lithium (OTCMKTS:LIACF) & Ferroglobe (NASDAQ:GSM)

American Lithium (OTCMKTS:LIACF) and Ferroglobe (NASDAQ:GSM) are both small-cap basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, analyst recommendations, institutional ownership, dividends, valuation and profitability.

Profitability

This table compares American Lithium and Ferroglobe’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Lithium	N/A	-16.28%	-15.96%
Ferroglobe	3.92%	15.06%	7.36%

Insider & Institutional Ownership

0.0% of American Lithium shares are held by institutional investors. Comparatively, 89.6% of Ferroglobe shares are held by institutional investors. 13.1% of Ferroglobe shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

American Lithium has a beta of 1.48, indicating that its share price is 48% more volatile than the S&P 500. Comparatively, Ferroglobe has a beta of 1.89, indicating that its share price is 89% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for American Lithium and Ferroglobe, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Lithium	0	0	0	0	N/A
Ferroglobe	0	0	0	0	N/A

Earnings and Valuation

This table compares American Lithium and Ferroglobe’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Lithium	N/A	N/A	-$18.80 million	($0.11)	-5.45
Ferroglobe	$1.65 billion	0.62	$82.66 million	$0.34	16.00

Ferroglobe has higher revenue and earnings than American Lithium. American Lithium is trading at a lower price-to-earnings ratio than Ferroglobe, indicating that it is currently the more affordable of the two stocks.

Summary

Ferroglobe beats American Lithium on 10 of the 10 factors compared between the two stocks.

About American Lithium

American Lithium Corp., an exploration stage company, engages in the identification, acquisition, exploration, and development of resource properties in the United States. It principally focuses on the TLC Claystones project covering an area of approximately 5,052 hectares located in the town of Tonopah, Nevada; and the Falchani Lithium project and the Macusani Uranium project located in Puno, Peru. The company was formerly known as Menika Mining Ltd. and changed its name to American Lithium Corp. in April 2016. American Lithium Corp. was incorporated in 1974 and is headquartered in Vancouver, Canada.

About Ferroglobe

Ferroglobe PLC operates in the silicon and specialty metals industry in the United States, Europe, and internationally. It provides silicone chemicals that are used in a range of applications, including personal care items, construction-related products, health care products, and electronics, as well as silicon metal for primary and secondary aluminum producers; silicomanganese, which is used as deoxidizing agent in the steel manufacturing process; and ferromanganese that is used as a deoxidizing, desulphurizing, and degassing agent in the removal of nitrogen and other harmful elements from steel. The company also offers ferrosilicon products that are used to produce stainless steel, carbon steel, and various other steel alloys, as well as to manufacture electrodes and aluminum; calcium silicon, which is used in the deoxidation and desulfurization of liquid steel, and production of coatings for cast iron pipes, as well as in the welding process of powder metal and in pyrotechnics; and nodularizers and inoculants, which are used in the production of iron. In addition, it provides silica fume, a by-product of the electrometallurgical process of silicon metal and ferrosilicon. Further, the company operates quartz mines in South Africa, Spain, the United States, and Canada; and low-ash metallurgical coal mines in the United States, as well as holds interests in hydroelectric power plant in France. It serves silicone chemical, aluminum, and steel manufacturers; auto companies and their suppliers; ductile iron foundries; manufacturers of photovoltaic solar cells and computer chips; and concrete producers. The company was formerly known as VeloNewco Limited and changed its name to Ferroglobe PLC in December 2015. The company was incorporated in 2015 and is headquartered in London, the United Kingdom.