Critical Comparison: Anglo American (OTCMKTS:NGLOY) & American Lithium (NASDAQ:AMLI)

Anglo American (OTCMKTS:NGLOY) and American Lithium (NASDAQ:AMLI) are both basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, risk and dividends.

Institutional & Insider Ownership

0.0% of Anglo American shares are held by institutional investors. Comparatively, 7.7% of American Lithium shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Anglo American and American Lithium, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Anglo American	1	3	2	1	2.43
American Lithium	0	0	1	1	3.50

American Lithium has a consensus target price of $3.25, indicating a potential upside of 362.96%. Given American Lithium’s stronger consensus rating and higher probable upside, analysts plainly believe American Lithium is more favorable than Anglo American.

Volatility & Risk

Anglo American has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500. Comparatively, American Lithium has a beta of 1.47, suggesting that its share price is 47% more volatile than the S&P 500.

Profitability

This table compares Anglo American and American Lithium’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Anglo American	N/A	N/A	N/A
American Lithium	N/A	-17.25%	-16.87%

Earnings & Valuation

This table compares Anglo American and American Lithium”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Anglo American	$30.65 billion	1.30	$283.00 million	N/A	N/A
American Lithium	N/A	N/A	-$29.55 million	($0.10)	-7.02

Anglo American has higher revenue and earnings than American Lithium.

Summary

Anglo American beats American Lithium on 5 of the 9 factors compared between the two stocks.

About Anglo American

Anglo American plc operates as a mining company in the United Kingdom and internationally. It explores for rough and polished diamonds, copper, platinum group metals and nickel, steelmaking coal, and iron ore; and nickel, polyhalite, and manganese ores. Anglo American plc was founded in 1917 and is headquartered in London, the United Kingdom.

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.