Head-To-Head Comparison: Lithium Americas (Argentina) (NYSE:LAAC) and First Quantum Minerals (OTCMKTS:FQVLF)

Lithium Americas (Argentina) (NYSE:LAAC) and First Quantum Minerals (OTCMKTS:FQVLF) are both basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, risk, institutional ownership, valuation, analyst recommendations and dividends.

Profitability

This table compares Lithium Americas (Argentina) and First Quantum Minerals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lithium Americas (Argentina)	N/A	3.09%	2.51%
First Quantum Minerals	-20.02%	0.26%	0.13%

Risk and Volatility

Lithium Americas (Argentina) has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500. Comparatively, First Quantum Minerals has a beta of 1.75, meaning that its share price is 75% more volatile than the S&P 500.

Institutional and Insider Ownership

49.2% of Lithium Americas (Argentina) shares are held by institutional investors. 19.8% of Lithium Americas (Argentina) shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Lithium Americas (Argentina) and First Quantum Minerals’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lithium Americas (Argentina)	N/A	N/A	$1.29 billion	$7.99	0.59
First Quantum Minerals	$6.46 billion	1.72	-$954.00 million	($1.70)	-7.83

Lithium Americas (Argentina) has higher earnings, but lower revenue than First Quantum Minerals. First Quantum Minerals is trading at a lower price-to-earnings ratio than Lithium Americas (Argentina), indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Lithium Americas (Argentina) and First Quantum Minerals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lithium Americas (Argentina)	0	2	3	0	2.60
First Quantum Minerals	0	5	2	0	2.29

Lithium Americas (Argentina) presently has a consensus target price of $9.40, suggesting a potential upside of 99.15%. First Quantum Minerals has a consensus target price of $27.61, suggesting a potential upside of 107.45%. Given First Quantum Minerals’ higher probable upside, analysts plainly believe First Quantum Minerals is more favorable than Lithium Americas (Argentina).

Summary

Lithium Americas (Argentina) beats First Quantum Minerals on 10 of the 13 factors compared between the two stocks.

About Lithium Americas (Argentina)

Lithium Americas (Argentina) Corp. operates as a resource company. The company explores for lithium deposits. The company owns interests in the Cauchari-Olaroz project located in Jujuy province of Argentina. It also has a pipeline of development and exploration stage projects, including the Pastos Grandes project and the Sal de la Puna project located in Salta Province in northwestern Argentina. Lithium Americas (Argentina) Corp. is headquartered in Vancouver, Canada.

About First Quantum Minerals

First Quantum Minerals Ltd., together with its subsidiaries, engages in the exploration, development, and production of mineral properties. It primarily explores for copper, nickel, pyrite, silver, gold, and zinc ores, as well as produces acid. The company has operating mines located in Zambia, Panama, Finland, Turkey, Spain, Australia, and Mauritania, as well as a development project in Zambia. It is exploring the Taca Taca copper-gold-molybdenum project in Argentina, as well as the Haquira copper deposit in Peru. The company was formerly known as First Quantum Ventures Ltd. and changed its name to First Quantum Minerals Ltd. in July 1996. The company is based in Vancouver, Canada.