NexGen Energy (NYSE:NXE) vs. Avalon Rare Metals (OTCMKTS:AVLNF) Head-To-Head Comparison

Avalon Rare Metals (OTCMKTS:AVLNF) and NexGen Energy (NYSE:NXE) 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, profitability, institutional ownership, valuation and earnings.

Insider & Institutional Ownership

42.4% of NexGen Energy shares are owned by institutional investors. 2.4% of Avalon Rare Metals shares are owned by insiders. Comparatively, 5.6% of NexGen Energy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility and Risk

Avalon Rare Metals has a beta of -0.02, suggesting that its stock price is 102% less volatile than the S&P 500. Comparatively, NexGen Energy has a beta of 1.54, suggesting that its stock price is 54% more volatile than the S&P 500.

Earnings and Valuation

This table compares Avalon Rare Metals and NexGen Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Avalon Rare Metals	$40,000.00	587.99	-$3.72 million	N/A	N/A
NexGen Energy	N/A	N/A	-$56.60 million	($0.41)	-22.24

Avalon Rare Metals has higher revenue and earnings than NexGen Energy.

Profitability

This table compares Avalon Rare Metals and NexGen Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Avalon Rare Metals	-10,634.21%	-4.50%	-4.14%
NexGen Energy	N/A	-21.35%	-14.24%

Analyst Ratings

This is a breakdown of current ratings and target prices for Avalon Rare Metals and NexGen Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Avalon Rare Metals	0	0	0	0	0.00
NexGen Energy	1	1	5	1	2.75

Summary

NexGen Energy beats Avalon Rare Metals on 7 of the 11 factors compared between the two stocks.

About Avalon Rare Metals

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.

About NexGen Energy

NexGen Energy Ltd., an exploration and development stage company, engages in the acquisition, exploration, and evaluation and development of uranium properties in Canada. It holds a 100% interest in the Rook I project that consists of 32 contiguous mineral claims totaling an area of 35,065 hectares located in the southwestern Athabasca Basin of Saskatchewan. The company is headquartered in Vancouver, Canada.