Contrasting 5E Advanced Materials (NASDAQ:FEAM) and American Battery Technology (NASDAQ:ABAT)

5E Advanced Materials (NASDAQ:FEAM) and American Battery Technology (NASDAQ:ABAT) are both small-cap basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, dividends, risk, valuation, profitability, analyst recommendations and institutional ownership.

Valuation and Earnings

This table compares 5E Advanced Materials and American Battery Technology”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
5E Advanced Materials	N/A	N/A	-$62.01 million	($1.12)	-0.41
American Battery Technology	$340,000.00	207.17	-$52.50 million	($0.98)	-0.96

American Battery Technology has higher revenue and earnings than 5E Advanced Materials. American Battery Technology is trading at a lower price-to-earnings ratio than 5E Advanced Materials, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and target prices for 5E Advanced Materials and American Battery Technology, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
5E Advanced Materials	0	1	2	0	2.67
American Battery Technology	0	0	1	0	3.00

5E Advanced Materials presently has a consensus target price of $4.58, indicating a potential upside of 890.35%. American Battery Technology has a consensus target price of $6.00, indicating a potential upside of 534.79%. Given 5E Advanced Materials’ higher probable upside, research analysts clearly believe 5E Advanced Materials is more favorable than American Battery Technology.

Insider and Institutional Ownership

9.9% of American Battery Technology shares are held by institutional investors. 9.1% of 5E Advanced Materials shares are held by company insiders. Comparatively, 5.2% of American Battery Technology shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares 5E Advanced Materials and American Battery Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
5E Advanced Materials	N/A	-243.25%	-49.58%
American Battery Technology	N/A	-65.58%	-51.22%

Volatility and Risk

5E Advanced Materials has a beta of 1.92, suggesting that its stock price is 92% more volatile than the S&P 500. Comparatively, American Battery Technology has a beta of 2.17, suggesting that its stock price is 117% more volatile than the S&P 500.

Summary

American Battery Technology beats 5E Advanced Materials on 7 of the 12 factors compared between the two stocks.

About 5E Advanced Materials

5E Advanced Materials, Inc. engages in the exploration and development of mineral properties in Australia and the United States. The company primarily explores for borates and lithium deposits. It holds 100% interest in the Fort Cady project located in the Mojave Desert region in eastern San Bernardino County, California. The company was formerly known as American Pacific Borates Limited. The company was incorporated in 2016 and is based in Hesperia, California.

About American Battery Technology

American Battery Technology Company operates as a battery materials company. The company explores for resources of battery metals, such as such as lithium, nickel, cobalt, and manganese; and develops and commercializes technologies for the extraction of battery metals, as well as commercializes integrated process for the recycling of lithium-ion batteries. The company was formerly known as American Battery Metals Corporation. American Battery Technology Company was incorporated in 2011 and is headquartered in Reno, Nevada.