Canstar Resources (CVE:ROX) and Canada Rare Earth (CVE:LL) 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 valuation, analyst recommendations, institutional ownership, risk, dividends, earnings and profitability.
Earnings and Valuation
This table compares Canstar Resources and Canada Rare Earth's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Canstar Resources | N/A | N/A | N/A | C($0.01) | -23.89 |
| Canada Rare Earth | C$892,642.00 | 19.25 | C$-606,585.00 | C$0.00 | -28.33 |
Canstar Resources has higher earnings, but lower revenue than Canada Rare Earth. Canada Rare Earth is trading at a lower price-to-earnings ratio than Canstar Resources, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Canstar Resources and Canada Rare Earth's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Canstar Resources | N/A | N/A | N/A |
| Canada Rare Earth | N/A | N/A | N/A |
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Canstar Resources and Canada Rare Earth, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Canstar Resources | 0 | 0 | 0 | 0 | N/A |
| Canada Rare Earth | 0 | 0 | 0 | 0 | N/A |
Summary
Canada Rare Earth beats Canstar Resources on 2 of the 3 factors compared between the two stocks.
