Critical Review: Quantum Materials (OTCMKTS:QTMM) vs. American Lithium (NASDAQ:AMLI)

Quantum Materials (OTCMKTS:QTMM) and American Lithium (NASDAQ:AMLI) are both small-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, earnings, risk, dividends, analyst recommendations, institutional ownership and valuation.

Institutional and Insider Ownership

0.1% of Quantum Materials shares are held by institutional investors. Comparatively, 7.7% of American Lithium shares are held by institutional investors. 12.8% of Quantum Materials shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

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

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Quantum Materials and American Lithium, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Quantum Materials	0	0	0	0	0.00
American Lithium	0	0	1	1	3.50

American Lithium has a consensus target price of $3.25, suggesting a potential upside of 778.38%. Given American Lithium’s stronger consensus rating and higher possible upside, analysts plainly believe American Lithium is more favorable than Quantum Materials.

Valuation & Earnings

This table compares Quantum Materials and American Lithium”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Quantum Materials	N/A	N/A	-$8.96 million	N/A	N/A
American Lithium	N/A	N/A	-$29.55 million	($0.10)	-3.70

Volatility and Risk

Quantum Materials has a beta of 2.99, suggesting that its share price is 199% more volatile than the S&P 500. Comparatively, American Lithium has a beta of 1.41, suggesting that its share price is 41% more volatile than the S&P 500.

About Quantum Materials

Quantum Materials Corp. engages in the design, development, production and supply of nanomaterials, including quantum dots, tetrapod quantum dots, and other nanoparticles for a range of applications in televisions, displays and other optoelectronics, photovoltaics, solid state lighting, life sciences, security ink, battery, and sensor sectors of the market. The company was founded by Stephen Squires on January 9, 2007 and is headquartered in San Marcos, TX.

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.