Financial Analysis: American Lithium (NASDAQ:AMLI) and Trevali Mining (OTCMKTS:TREVF)

Trevali Mining (OTCMKTS:TREVF) and American Lithium (NASDAQ:AMLI) are both small-cap basic materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Trevali Mining	-6.08%	-0.96%	-0.41%
American Lithium	N/A	-17.25%	-16.87%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Trevali Mining and American Lithium, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trevali Mining	0	0	0	0	0.00
American Lithium	0	0	1	1	3.50

American Lithium has a consensus price target of $3.25, indicating a potential upside of 1,036.36%. Given American Lithium’s stronger consensus rating and higher possible upside, analysts plainly believe American Lithium is more favorable than Trevali Mining.

Earnings & Valuation

This table compares Trevali Mining and American Lithium”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Trevali Mining	$288.09 million	0.00	$26.02 million	($0.15)	N/A
American Lithium	N/A	N/A	-$29.55 million	($0.10)	-2.86

Trevali Mining has higher revenue and earnings than American Lithium. American Lithium is trading at a lower price-to-earnings ratio than Trevali Mining, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

7.7% of American Lithium shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Trevali Mining has a beta of 2.53, meaning that its share price is 153% more volatile than the S&P 500. Comparatively, American Lithium has a beta of 1.41, meaning that its share price is 41% more volatile than the S&P 500.

Summary

American Lithium beats Trevali Mining on 7 of the 13 factors compared between the two stocks.

About Trevali Mining

Trevali Mining Corporation, a base-metals mining company, engages in the acquisition, exploration, development of, and production from mineral properties. It primarily explores for zinc, lead, silver, copper, and gold deposits. The company's operational assets include the 90%-owned Perkoa Mine in Burkina Faso; 90%-owned Rosh Pinah Mine in Namibia; and Caribou Mine in northern New Brunswick, Canada. It also holds interests in the Halfmile, Stratmat, and Restigouche properties situated in New Brunswick, Canada; Gergarub project in Namibia; and Ruttan Mine located in northern Manitoba, Canada. In addition, the company has an option to acquire a 100% interest in the Heath Steele deposit located in New Brunswick, Canada. Trevali Mining Corporation was formerly known as Trevali Resources Corp. and changed its name to Trevali Mining Corporation in April 2011. The company was incorporated in 1964 and is headquartered in Vancouver, Canada.

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.