American Lithium (OTCMKTS:LIACF – Get Free Report) and New Gold (NYSE:NGD – Get Free Report) are both basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, valuation and dividends.
Profitability
This table compares American Lithium and New Gold’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| American Lithium | N/A | -16.28% | -15.96% |
| New Gold | 11.10% | 13.70% | 6.31% |
Insider and Institutional Ownership
0.0% of American Lithium shares are owned by institutional investors. Comparatively, 42.8% of New Gold shares are owned by institutional investors. 0.2% of New Gold shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Volatility & Risk
Earnings and Valuation
This table compares American Lithium and New Gold”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 | -$18.80 million | ($0.11) | -2.25 |
| New Gold | $941.50 million | 4.06 | -$64.50 million | $0.17 | 28.38 |
American Lithium has higher earnings, but lower revenue than New Gold. American Lithium is trading at a lower price-to-earnings ratio than New Gold, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current recommendations and price targets for American Lithium and New Gold, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| American Lithium | 0 | 0 | 0 | 0 | 0.00 |
| New Gold | 0 | 1 | 4 | 2 | 3.14 |
New Gold has a consensus price target of $4.13, suggesting a potential downside of 14.34%. Given New Gold’s stronger consensus rating and higher probable upside, analysts clearly believe New Gold is more favorable than American Lithium.
Summary
New Gold beats American Lithium on 12 of the 14 factors compared between the two stocks.
About American Lithium
American Lithium Corp., an exploration stage company, engages in the identification, acquisition, exploration, and development of resource properties in the United States. It principally focuses on the TLC Claystones project covering an area of approximately 5,052 hectares 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 headquartered in Vancouver, Canada.
About New Gold
New Gold Inc., an intermediate gold mining company, develops and operates of mineral properties in Canada. It primarily explores for gold, silver, and copper deposits. The company’s principal operating properties include 100% interest in the Rainy River mine located in Northwestern Ontario, Canada; and New Afton project situated in South-Central British Columbia. New Gold Inc. is headquartered in Toronto, Canada.
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