Critical Survey: 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, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.

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

Analyst Recommendations

This is a breakdown of current ratings and price targets 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 possible upside, analysts clearly believe American Lithium is more favorable than Anglo American.

Earnings & Valuation

This table compares American Lithium and Anglo American”s top-line 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.

Risk & Volatility

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

Insider and Institutional Ownership

7.7% of American Lithium shares are held by institutional investors. Comparatively, 0.0% of Anglo American shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

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.