Reviewing American Lithium Minerals (OTCMKTS:AMLM) and MP Materials (NYSE:MP)

MP Materials (NYSE:MP) and American Lithium Minerals (OTCMKTS:AMLM) are both basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, profitability, dividends and institutional ownership.

Volatility and Risk

MP Materials has a beta of 2.31, indicating that its share price is 131% more volatile than the S&P 500. Comparatively, American Lithium Minerals has a beta of -1.16, indicating that its share price is 216% less volatile than the S&P 500.

Institutional and Insider Ownership

52.6% of MP Materials shares are owned by institutional investors. 12.6% of MP Materials shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares MP Materials and American Lithium Minerals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MP Materials	-32.24%	-6.78%	-3.39%
American Lithium Minerals	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent recommendations for MP Materials and American Lithium Minerals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MP Materials	0	4	6	0	2.60
American Lithium Minerals	0	0	0	0	0.00

MP Materials currently has a consensus price target of $22.10, suggesting a potential upside of 2.32%. Given MP Materials’ stronger consensus rating and higher possible upside, equities analysts clearly believe MP Materials is more favorable than American Lithium Minerals.

Valuation and Earnings

This table compares MP Materials and American Lithium Minerals”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MP Materials	$253.45 million	13.91	$24.31 million	($0.54)	-40.00
American Lithium Minerals	N/A	N/A	N/A	N/A	N/A

MP Materials has higher revenue and earnings than American Lithium Minerals.

Summary

MP Materials beats American Lithium Minerals on 7 of the 10 factors compared between the two stocks.

About MP Materials

MP Materials Corp., together with its subsidiaries, produces rare earth materials. The company owns and operates the Mountain Pass Rare Earth mine and processing facility in North America. It holds the mineral rights to the Mountain Pass mine and surrounding areas, as well as intellectual property rights related to the processing and development of rare earth minerals. The company was founded in 2017 and is headquartered in Las Vegas, Nevada.

About American Lithium Minerals

American Lithium Minerals, Inc., engages in mineral exploration for lithium and rare earth minerals in the United States. The company's properties include Stonewall Flat Lithium project that covers an area of approximately 1,250 acres on Stonewall Playa in Nevada's Lida Valley Basin; and Kingman Rare Earth project comprising two individual properties, which include Kingman Feldspar Mine and the Mineral X property. It also holds interest in Silver Peak Lithium, a claystone lithium prospect comprising 24 lode mining claims located in Esmeralda County; and West End Lithium property that comprises 24 lode mining claims located in Nye County, Nevada. The company was formerly known as Nugget Resources Inc. and changed its name to American Lithium Minerals, Inc. in March 2009. The company was incorporated in 2005 and is based in Las Vegas, Nevada..