Contrasting Lithium (OTCMKTS:LTUM) & Western Copper & Gold (NYSE:WRN)

Western Copper & Gold (NYSE:WRN) and Lithium (OTCMKTS:LTUM) are both small-cap basic materials companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, earnings, risk, institutional ownership and profitability.

Valuation and Earnings

This table compares Western Copper & Gold and Lithium”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Western Copper & Gold	N/A	N/A	-$2.47 million	($0.02)	-52.50
Lithium	N/A	N/A	-$620,000.00	N/A	N/A

Risk and Volatility

Western Copper & Gold has a beta of 1.84, suggesting that its share price is 84% more volatile than the S&P 500. Comparatively, Lithium has a beta of 0.69, suggesting that its share price is 31% less volatile than the S&P 500.

Insider and Institutional Ownership

22.0% of Western Copper & Gold shares are owned by institutional investors. 4.6% of Western Copper & Gold shares are owned by company insiders. Comparatively, 4.8% of Lithium shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Western Copper & Gold and Lithium’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Western Copper & Gold	N/A	-3.53%	-3.45%
Lithium	N/A	-58.26%	-22.81%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Western Copper & Gold and Lithium, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Western Copper & Gold	0	0	3	1	3.25
Lithium	0	0	0	0	0.00

Western Copper & Gold currently has a consensus target price of $4.25, indicating a potential upside of 304.76%. Given Western Copper & Gold’s stronger consensus rating and higher possible upside, analysts clearly believe Western Copper & Gold is more favorable than Lithium.

Summary

Western Copper & Gold beats Lithium on 8 of the 10 factors compared between the two stocks.

About Western Copper & Gold

Western Copper and Gold Corporation, an exploration stage company, engages in the exploration and development of mineral properties in Canada. The company explores for gold, copper, silver, and molybdenum deposits. Its principal property is the Casino mineral property that comprise 1,136 full and partial quartz claims, and 55 placer claims located in Yukon, Canada. The company was formerly known as Western Copper Corporation and changed its name to Western Copper and Gold Corporation in October 2011. Western Copper and Gold Corporation was incorporated in 2006 and is headquartered in Vancouver, Canada.

About Lithium

Lithium Corporation, an exploration stage mining company, engages in the identification, acquisition, and exploration of metals and minerals in Nevada and British Columbia. It explores for lithium/boron/potassium, graphite, gold, and silver deposits, as well as titanium and rare earth elements. The company was formerly known as Utalk Communications Inc. and changed its name to Lithium Corporation in September 2009. Lithium Corporation was incorporated in 2007 and is headquartered in Elko, Nevada.