Turquoise Hill Resources (NYSE:TRQ) and Lithium Americas (NYSE:LAC) are both basic materials companies, but which is the better business? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, risk, valuation, institutional ownership and dividends.
Valuation and Earnings
This table compares Turquoise Hill Resources and Lithium Americas' revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Turquoise Hill Resources | $1.17 billion | 3.32 | $-150,460,000.00 | N/A | N/A |
Lithium Americas | $4.84 million | 356.30 | $51.67 million | ($0.22) | -65.64 |
Lithium Americas has lower revenue, but higher earnings than Turquoise Hill Resources.
Insider & Institutional Ownership
8.1% of Lithium Americas shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Volatility & Risk
Turquoise Hill Resources has a beta of 2.12, indicating that its share price is 112% more volatile than the S&P 500. Comparatively, Lithium Americas has a beta of 1.6, indicating that its share price is 60% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current recommendations and price targets for Turquoise Hill Resources and Lithium Americas, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Turquoise Hill Resources | 0 | 3 | 4 | 0 | 2.57 |
Lithium Americas | 0 | 3 | 4 | 0 | 2.57 |
Turquoise Hill Resources currently has a consensus price target of $21.2143, indicating a potential upside of 10.20%. Lithium Americas has a consensus price target of $20.3214, indicating a potential upside of 40.73%. Given Lithium Americas' higher probable upside, analysts clearly believe Lithium Americas is more favorable than Turquoise Hill Resources.
Profitability
This table compares Turquoise Hill Resources and Lithium Americas' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Turquoise Hill Resources | 42.70% | 4.76% | 2.95% |
Lithium Americas | N/A | -22.88% | -10.85% |
Summary
Turquoise Hill Resources beats Lithium Americas on 6 of the 10 factors compared between the two stocks.