Contrasting Lithium Americas (NYSE:LAC) and Pelangio Exploration (NYSE:PGXPF)

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Lithium Americas (NYSE:LAC) and Pelangio Exploration (OTCMKTS:PGXPF) are both small-cap basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, valuation, institutional ownership, analyst recommendations, earnings, risk and dividends.

Profitability

This table compares Lithium Americas and Pelangio Exploration’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lithium Americas -560.33% -26.10% -20.25%
Pelangio Exploration N/A -537.60% -143.58%

Earnings & Valuation

This table compares Lithium Americas and Pelangio Exploration’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lithium Americas $4.84 million 72.79 -$28.27 million ($0.26) -15.23
Pelangio Exploration N/A N/A -$1.06 million N/A N/A

Pelangio Exploration has lower revenue, but higher earnings than Lithium Americas.

Volatility & Risk

Lithium Americas has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500. Comparatively, Pelangio Exploration has a beta of 0.4, indicating that its share price is 60% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Lithium Americas and Pelangio Exploration, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lithium Americas 0 1 2 0 2.67
Pelangio Exploration 0 0 0 0 N/A

Insider & Institutional Ownership

5.5% of Lithium Americas shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Lithium Americas beats Pelangio Exploration on 6 of the 8 factors compared between the two stocks.

About Lithium Americas

Lithium Americas Corp. operates as a resource company in the United States. The company explores for lithium deposits. It primarily holds interests in the Cauchari-Olaroz Project located in Jujuy province of Argentina; and owns a 100% interest in the Thacker Pass lithium project located in Nevada. The company also manufactures and sells organoclay products that are used in complex oil and gas drilling and other applications. The company was formerly known as Western Lithium USA Corporation and changed its name to Lithium Americas Corp. in March 2016. Lithium Americas Corp. was incorporated in 2007 and is headquartered in Vancouver, Canada.

About Pelangio Exploration

Pelangio Exploration, Inc. is a junior gold exploration company, which engages in the acquisition and exploration of early stage or undervalued exploration prospects located in world-class gold belts. Its projects include Obuasi, Manfo, and Akroma properties in Ghana; Birch Lake and Poirier Gold properties in Canada. The company was founded on February 27, 2008 and is headquartered in Toronto, Canada.

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