Analyzing American Lithium (NASDAQ:AMLI) and Avalon Advanced Materials (OTCMKTS:AVLNF)

American Lithium (NASDAQ:AMLI) and Avalon Advanced Materials (OTCMKTS:AVLNF) are both small-cap basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, risk, dividends and institutional ownership.

Valuation & Earnings

This table compares American Lithium and Avalon Advanced Materials’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Lithium	N/A	N/A	-$27.17 million	($0.16)	-4.40
Avalon Advanced Materials	$90,000.00	307.66	-$2.46 million	$0.01	4.90

Avalon Advanced Materials has higher revenue and earnings than American Lithium. American Lithium is trading at a lower price-to-earnings ratio than Avalon Advanced Materials, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

7.7% of American Lithium shares are held by institutional investors. 2.4% of Avalon Advanced Materials shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations for American Lithium and Avalon Advanced Materials, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Lithium	0	0	0	0	N/A
Avalon Advanced Materials	0	0	0	0	N/A

Volatility and Risk

American Lithium has a beta of 1.53, indicating that its stock price is 53% more volatile than the S&P 500. Comparatively, Avalon Advanced Materials has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
American Lithium	N/A	-21.89%	-21.50%
Avalon Advanced Materials	1,728.81%	-2.34%	-2.25%

Summary

Avalon Advanced Materials beats American Lithium on 8 of the 10 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 Avalon Advanced Materials

Avalon Advanced Materials Inc., together with its subsidiaries, engages in the acquisition, exploration, evaluation, and development of rare metal and mineral properties primarily in Canada. The company focuses on exploring lithium, tantalum, cesium, indium, gallium, germanium, tin, yttrium, and zirconium deposits, as well as rare earth elements. Its flagship project is the 100% owned Separation Rapids Lithium Project consisting of nineteen mineral claims and one mining lease covering an area of approximately 4,414 hectares located in the Paterson Lake Area, Kenora Mining Division, Ontario. The company was formerly known as Avalon Rare Metals Inc. and changed its name to Avalon Advanced Materials Inc. in February 2016. Avalon Advanced Materials Inc. is headquartered in Toronto, Canada.