Comparing Alvopetro Energy (OTCMKTS:ALVOF) and Snow Lake Resources (NASDAQ:LITM)

Snow Lake Resources (NASDAQ:LITM) and Alvopetro Energy (OTCMKTS:ALVOF) are both small-cap energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, institutional ownership, dividends, risk, analyst recommendations, earnings and valuation.

Profitability

This table compares Snow Lake Resources and Alvopetro Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Snow Lake Resources	N/A	N/A	N/A
Alvopetro Energy	37.69%	22.24%	17.66%

Volatility and Risk

Snow Lake Resources has a beta of 0.54, suggesting that its share price is 46% less volatile than the S&P 500. Comparatively, Alvopetro Energy has a beta of 0.05, suggesting that its share price is 95% less volatile than the S&P 500.

Earnings and Valuation

This table compares Snow Lake Resources and Alvopetro Energy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Snow Lake Resources	N/A	N/A	-$11.46 million	($3.90)	-0.79
Alvopetro Energy	$45.52 million	4.71	$16.30 million	$0.52	11.23

Alvopetro Energy has higher revenue and earnings than Snow Lake Resources. Snow Lake Resources is trading at a lower price-to-earnings ratio than Alvopetro Energy, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and price targets for Snow Lake Resources and Alvopetro Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Snow Lake Resources	1	0	0	0	1.00
Alvopetro Energy	0	1	0	0	2.00

Institutional & Insider Ownership

0.2% of Snow Lake Resources shares are held by institutional investors. 13.4% of Snow Lake Resources shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Alvopetro Energy beats Snow Lake Resources on 8 of the 11 factors compared between the two stocks.

About Snow Lake Resources

Snow Lake Resources Ltd., a natural resource exploration company, engages in the exploration and development of mineral resources in Canada. The company explores for lithium mineral resources. Its flagship property is the Thomson Brothers and Grass River lithium projects located to Crowduck Bay Fault region. The company was incorporated in 2018 and is based in Winnipeg, Canada.

About Alvopetro Energy

Alvopetro Energy Ltd. operates as an independent upstream and midstream operator. It engages in the acquisition, exploration, development, and production of hydrocarbons. The company holds interests in the Caburé and Murucututu natural gas assets, Block 182 and 183 exploration assets, and Bom Lugar and Mãe-da-lua oil fields, which covers an area of approximately 22,166 acres in the Recôncavo basin onshore Brazil. Alvopetro Energy Ltd. was incorporated in 2013 and is headquartered in Calgary, Canada.