Analyzing Metals Acquisition (NYSE:MTAL) and Avalon Advanced Materials (OTCMKTS:AVLNF)

Metals Acquisition (NYSE:MTAL) and Avalon Advanced Materials (OTCMKTS:AVLNF) are both small-cap basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, dividends, analyst recommendations, valuation, profitability and earnings.

Institutional and Insider Ownership

87.5% of Metals Acquisition shares are owned by institutional investors. 1.8% of Metals Acquisition shares are owned by insiders. Comparatively, 2.4% of Avalon Advanced Materials shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Metals Acquisition and Avalon Advanced Materials’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Metals Acquisition	N/A	N/A	N/A
Avalon Advanced Materials	-13,866.67%	-5.30%	-4.96%

Earnings and Valuation

This table compares Metals Acquisition and Avalon Advanced Materials”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Metals Acquisition	$322.58 million	2.46	-$144.55 million	N/A	N/A
Avalon Advanced Materials	$80,000.00	173.85	-$470,000.00	N/A	N/A

Avalon Advanced Materials has lower revenue, but higher earnings than Metals Acquisition.

Risk & Volatility

Metals Acquisition has a beta of 0.16, indicating that its share price is 84% less volatile than the S&P 500. Comparatively, Avalon Advanced Materials has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Metals Acquisition and Avalon Advanced Materials, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Metals Acquisition	0	1	1	0	2.50
Avalon Advanced Materials	0	0	0	0	0.00

Metals Acquisition currently has a consensus price target of $14.75, indicating a potential upside of 37.54%. Given Metals Acquisition’s stronger consensus rating and higher probable upside, analysts clearly believe Metals Acquisition is more favorable than Avalon Advanced Materials.

Summary

Metals Acquisition beats Avalon Advanced Materials on 8 of the 12 factors compared between the two stocks.

About Metals Acquisition

Metals Acquisition Limited focuses on mining and production of copper and silver. It operates the CSA copper mine in Cobar, Australia. The company was incorporated in 2022 and is headquartered in Saint Helier, Jersey.

About Avalon Advanced Materials

Avalon Advanced Materials Inc., together with its subsidiaries, engages in the acquisition, exploration, evaluation, and development of rare metal and mineral properties primarily in Canada. The company focuses on exploring lithium, tantalum, cesium, indium, gallium, germanium, tin, yttrium, and zirconium deposits, as well as rare earth elements. Its flagship project is the 100% owned Separation Rapids Lithium Project consisting of nineteen mineral claims and one mining lease covering an area of approximately 4,414 hectares located in the Paterson Lake Area, Kenora Mining Division, Ontario. The company was formerly known as Avalon Rare Metals Inc. and changed its name to Avalon Advanced Materials Inc. in February 2016. Avalon Advanced Materials Inc. is headquartered in Toronto, Canada.