Analyzing Avalon Rare Metals (AVLNF) and The Competition

Avalon Rare Metals (OTCMKTS:AVLNF) is one of 1,984 publicly-traded companies in the “Metals & Mining” industry, but how does it compare to its rivals? We will compare Avalon Rare Metals to similar companies based on the strength of its dividends, earnings, analyst recommendations, institutional ownership, valuation, risk and profitability.

Institutional and Insider Ownership

16.0% of shares of all “Metals & Mining” companies are owned by institutional investors. 2.4% of Avalon Rare Metals shares are owned by insiders. Comparatively, 17.7% of shares of all “Metals & Mining” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Avalon Rare Metals and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Avalon Rare Metals	0	1	0	0	2.00
Avalon Rare Metals Competitors	6407	22611	32309	1801	2.47

As a group, “Metals & Mining” companies have a potential upside of 23.51%. Given Avalon Rare Metals’ rivals stronger consensus rating and higher possible upside, analysts clearly believe Avalon Rare Metals has less favorable growth aspects than its rivals.

Volatility and Risk

Avalon Rare Metals has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500. Comparatively, Avalon Rare Metals’ rivals have a beta of 0.96, meaning that their average share price is 4% less volatile than the S&P 500.

Earnings & Valuation

This table compares Avalon Rare Metals and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Avalon Rare Metals	$190,000.00	-$20.85 million	-0.03
Avalon Rare Metals Competitors	$174.73 billion	$278.94 million	-26.29

Avalon Rare Metals’ rivals have higher revenue and earnings than Avalon Rare Metals. Avalon Rare Metals is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Avalon Rare Metals and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Avalon Rare Metals	-10,843.52%	-11.10%	-10.24%
Avalon Rare Metals Competitors	-1,164,884,689,320,590,400.00%	-52.92%	-2.03%

Summary

Avalon Rare Metals rivals beat Avalon Rare Metals on 10 of the 13 factors compared.

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.