Head to Head Analysis: Anglo American (OTCMKTS:NGLOY) versus American Lithium (NASDAQ:AMLI)

American Lithium (NASDAQ:AMLI) and Anglo American (OTCMKTS:NGLOY) are both basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, profitability, institutional ownership, valuation, dividends, analyst recommendations and risk.

Institutional and Insider Ownership

7.7% of American Lithium shares are owned by institutional investors. Comparatively, 0.0% of Anglo American shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
American Lithium	N/A	-17.25%	-16.87%
Anglo American	N/A	N/A	N/A

Earnings & Valuation

This table compares American Lithium and Anglo American”s gross 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	-$29.55 million	($0.10)	-6.85
Anglo American	$30.65 billion	1.32	$283.00 million	N/A	N/A

Anglo American has higher revenue and earnings than American Lithium.

Analyst Recommendations

This is a breakdown of recent ratings for American Lithium and Anglo American, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Lithium	0	0	1	1	3.50
Anglo American	1	3	2	1	2.43

American Lithium currently has a consensus target price of $3.25, indicating a potential upside of 374.45%. Given American Lithium’s stronger consensus rating and higher probable upside, analysts plainly believe American Lithium is more favorable than Anglo American.

Risk & Volatility

American Lithium has a beta of 1.47, suggesting that its share price is 47% more volatile than the S&P 500. Comparatively, Anglo American has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500.

Summary

Anglo American beats American Lithium on 5 of the 9 factors compared between the two stocks.

About American Lithium

American Lithium Corp., an exploration and development stage company, engages in the acquisition, exploration, and development of resource properties in the United States. It principally focuses on the TLC Lithium Project 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 based in Vancouver, Canada.

About Anglo American

Anglo American plc operates as a mining company in the United Kingdom and internationally. It explores for rough and polished diamonds, copper, platinum group metals and nickel, steelmaking coal, and iron ore; and nickel, polyhalite, and manganese ores. Anglo American plc was founded in 1917 and is headquartered in London, the United Kingdom.