Head to Head Review: Lithium (OTCMKTS:LTUM) and South32 (OTCMKTS:SOUHY)

Lithium (OTCMKTS:LTUM) and South32 (OTCMKTS:SOUHY) are both basic materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, dividends, earnings, valuation, risk, analyst recommendations and institutional ownership.

Profitability

This table compares Lithium and South32’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lithium	N/A	-32.82%	-15.31%
South32	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current ratings and target prices for Lithium and South32, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lithium	0	0	0	0	N/A
South32	0	2	3	0	2.60

Volatility and Risk

Lithium has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500. Comparatively, South32 has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500.

Insider & Institutional Ownership

0.1% of South32 shares are owned by institutional investors. 4.8% of Lithium shares are owned by insiders. Comparatively, 0.2% of South32 shares 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.

Valuation and Earnings

This table compares Lithium and South32’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lithium	N/A	N/A	-$620,000.00	N/A	N/A
South32	$7.43 billion	1.35	-$173.00 million	N/A	N/A

Lithium has higher earnings, but lower revenue than South32.

Summary

South32 beats Lithium on 6 of the 8 factors compared between the two stocks.

About Lithium

Lithium Corporation, an exploration stage mining company, engages in the identification, acquisition, and exploration of metals and minerals in Nevada and British Columbia. It explores for lithium/boron/potassium, graphite, gold, and silver deposits, as well as titanium and rare earth elements. The company was formerly known as Utalk Communications Inc. and changed its name to Lithium Corporation in September 2009. Lithium Corporation was incorporated in 2007 and is headquartered in Elko, Nevada.

About South32

South32 Limited operates as a diversified metals and mining company in Australia, India, China, Japan, the Middle East, Mozambique, the Netherlands, Brazil, Russia, South Africa, South Korea, the United States, and internationally. The company operates through Worsley Alumina, Brazil Alumina, Brazil Aluminium, Hillside Aluminium, Mozal Aluminium, Sierra Gorda, Cannington, Hermosa, Cerro Matoso, Illawarra Metallurgical Coal, Australia Manganese, and South Africa Manganese segments. It has a portfolio of assets producing bauxite, alumina, aluminum, copper, silver, lead, zinc, nickel, metallurgical coal, manganese, ferronickel, and other base metals. The company also exports its products. South32 Limited was incorporated in 2000 and is headquartered in Perth, Australia.