Nexa Resources (NYSE:NEXA) & American Lithium (OTCMKTS:LIACF) Head-To-Head Contrast

Nexa Resources (NYSE:NEXA) and American Lithium (OTCMKTS:LIACF) are both small-cap basic materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, profitability, valuation, dividends, institutional ownership and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nexa Resources	-10.30%	-4.16%	-1.24%
American Lithium	N/A	-16.28%	-15.96%

Volatility & Risk

Nexa Resources has a beta of 1.53, suggesting that its share price is 53% more volatile than the S&P 500. Comparatively, American Lithium has a beta of 1.48, suggesting that its share price is 48% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Nexa Resources and American Lithium, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nexa Resources	3	1	1	0	1.60
American Lithium	0	0	0	0	N/A

Nexa Resources currently has a consensus target price of $7.30, suggesting a potential upside of 0.41%. Given Nexa Resources’ higher possible upside, research analysts clearly believe Nexa Resources is more favorable than American Lithium.

Institutional & Insider Ownership

0.0% of American Lithium shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Nexa Resources and American Lithium”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nexa Resources	$2.60 billion	0.37	-$289.35 million	($2.22)	-3.27
American Lithium	N/A	N/A	-$18.80 million	($0.11)	-5.13

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

Summary

Nexa Resources beats American Lithium on 7 of the 11 factors compared between the two stocks.

About Nexa Resources

Nexa Resources S.A., together with its subsidiaries, engages in the zinc mining and smelting business worldwide. The company operates in two segments, Mining and Smelting. It produces zinc, zamac, zinc oxide, and zincal, as well as by-products, such as copper, lead, silver, gold, copper sulfate, sulfuric acid, copper cementum, silver concentrate, slag aggregates, and cadmium/sponge deposits. The company owns and operates six polymetallic mines, including three located in the Central Andes of Peru; two located in the State of Minas Gerais in Brazil; and one located in the State of Mato Grosso in Brazil. It also owns and operates three zinc smelters comprising one located in Cajamarquilla in Peru; and two located in the State of Minas Gerais in Brazil, which recovers and produces metallic zinc, zinc oxide, and by-products, such as sulfuric acid. The company also exports its products. Its products are used in civil construction, transportation, energy, agriculture, health, and consumer goods industries. The company was formerly known as VM Holding S.A. and changed its name to Nexa Resources S.A. in September 2017. The company was founded in 1956 and is based in Luxembourg City, Luxembourg. Nexa Resources S.A. is a subsidiary of Votorantim S.A.

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.