Perenti (OTCMKTS:AUSDF) & Standard Lithium (OTCMKTS:SLI) Critical Contrast

Perenti (OTCMKTS:AUSDF) and Standard Lithium (OTCMKTS:SLI) are both basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, institutional ownership, profitability, valuation and earnings.

Insider & Institutional Ownership

22.4% of Perenti shares are held by institutional investors. Comparatively, 16.8% of Standard Lithium shares are held by institutional investors. 3.7% of Standard Lithium shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for Perenti and Standard Lithium, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Perenti	0	0	0	0	0.00
Standard Lithium	0	0	2	0	3.00

Standard Lithium has a consensus target price of $3.50, indicating a potential upside of 96.63%. Given Standard Lithium’s stronger consensus rating and higher possible upside, analysts plainly believe Standard Lithium is more favorable than Perenti.

Valuation & Earnings

This table compares Perenti and Standard Lithium”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Perenti	N/A	N/A	N/A	($0.14)	-5.57
Standard Lithium	N/A	N/A	-$30.10 million	$0.59	3.02

Perenti is trading at a lower price-to-earnings ratio than Standard Lithium, indicating that it is currently the more affordable of the two stocks.

Dividends

Perenti pays an annual dividend of $0.08 per share and has a dividend yield of 10.5%. Standard Lithium pays an annual dividend of $2.00 per share and has a dividend yield of 112.4%. Perenti pays out -58.7% of its earnings in the form of a dividend. Standard Lithium pays out 339.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Perenti and Standard Lithium’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Perenti	N/A	N/A	N/A
Standard Lithium	N/A	-12.51%	-12.09%

Summary

Standard Lithium beats Perenti on 7 of the 11 factors compared between the two stocks.

About Perenti

Perenti Limited operates as a mining services company worldwide. It operates through Contract Mining, Drilling Services, and Mining Services and Idoba segments. The company offers underground and surface contract mining, drill and blast, in-pit grade control, exploration drilling, earthmoving, and machinery rebuilds services; and drilling services including specialized deep hole multi-intersectional directional diamond core drilling, underground diamond core drilling, drilling and blasting, and in-pit grade control services. It also provides mining support services, such as equipment hire, equipment parts and sales, equipment supply, logistics services, and technology driven products and services. The company was formerly known as Perenti Global Limited and changed its name to Perenti Limited in October 2022. Perenti Limited was incorporated in 1986 and is headquartered in Northbridge, Australia.

About Standard Lithium

Standard Lithium Ltd. explores for, develops, and processes lithium brine properties in the United States. Its flagship project is the Lanxess project with area of approximately 150,000 acres located in southern Arkansas. The company was formerly known as Patriot Petroleum Corp. and changed its name to Standard Lithium Ltd. in December 2016. Standard Lithium Ltd. was incorporated in 1998 and is headquartered in Vancouver, Canada.