Critical Contrast: Lithium Americas (LAC) & The Competition

Lithium Americas (NYSE: LAC) is one of 50 public companies in the “Metal mining” industry, but how does it contrast to its peers? We will compare Lithium Americas to related businesses based on the strength of its valuation, institutional ownership, dividends, earnings, analyst recommendations, risk and profitability.

Institutional & Insider Ownership

8.2% of Lithium Americas shares are held by institutional investors. Comparatively, 22.9% of shares of all “Metal mining” companies are held by institutional investors. 8.8% of shares of all “Metal mining” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings for Lithium Americas and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lithium Americas 0 1 2 0 2.67
Lithium Americas Competitors 361 1145 1342 82 2.39

Lithium Americas currently has a consensus price target of $9.50, suggesting a potential upside of 109.25%. As a group, “Metal mining” companies have a potential upside of 27.72%. Given Lithium Americas’ stronger consensus rating and higher possible upside, research analysts clearly believe Lithium Americas is more favorable than its peers.

Profitability

This table compares Lithium Americas and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lithium Americas -860.20% -28.03% -26.85%
Lithium Americas Competitors -326.96% -26.57% -6.69%

Earnings & Valuation

This table compares Lithium Americas and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Lithium Americas $4.29 million -$33.25 million -10.32
Lithium Americas Competitors $6.29 billion $843.29 million 16.11

Lithium Americas’ peers have higher revenue and earnings than Lithium Americas. Lithium Americas is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Lithium Americas peers beat Lithium Americas on 9 of the 12 factors compared.

About Lithium Americas

Lithium Americas Corp. operates as a resource company in the United States. The company explores for lithium deposits. It primarily holds interests in the Cauchari-Olaroz Project located in Jujuy province of Argentina; and the Lithium Nevada Project covering approximately 15,233 hectares of area located in northwestern Nevada. The company also manufactures and sells organoclay products that are used in complex oil and gas drilling and other applications. The company was formerly known as Western Lithium USA Corporation and changed its name to Lithium Americas Corp. in March 2016. Lithium Americas Corp. was incorporated in 2007 and is headquartered in Vancouver, Canada.

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