Lucara Diamond (TSE:LUC) and Rio2 (CVE:RIO) are both small-cap basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, valuation, earnings, analyst recommendations, institutional ownership and profitability.
Profitability
This table compares Lucara Diamond and Rio2's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Lucara Diamond | N/A | N/A | N/A |
Rio2 | N/A | N/A | N/A |
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Lucara Diamond and Rio2, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Lucara Diamond | 0 | 0 | 0 | 0 | N/A |
Rio2 | 0 | 0 | 0 | 1 | 4.00 |
Lucara Diamond presently has a consensus target price of C$0.70, indicating a potential downside of 2.78%. Rio2 has a consensus target price of C$1.50, indicating a potential upside of 85.19%. Given Rio2's higher probable upside, analysts plainly believe Rio2 is more favorable than Lucara Diamond.
Valuation and Earnings
This table compares Lucara Diamond and Rio2's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Lucara Diamond | C$125.26 million | 2.28 | C$-27,791,750.00 | C($0.07) | -10.29 |
Rio2 | N/A | N/A | N/A | C($0.06) | -13.97 |
Rio2 has lower revenue, but higher earnings than Lucara Diamond. Rio2 is trading at a lower price-to-earnings ratio than Lucara Diamond, indicating that it is currently the more affordable of the two stocks.
Summary
Rio2 beats Lucara Diamond on 3 of the 5 factors compared between the two stocks.