Lithium Americas Corp. (LAC.TO) (TSE:LAC) and Lundin Gold Inc. (LUG.TO) (TSE:LUG) are both mid-cap basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, institutional ownership, earnings and valuation.
Analyst Ratings
This is a summary of recent recommendations and price targets for Lithium Americas Corp. (LAC.TO) and Lundin Gold Inc. (LUG.TO), as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Lithium Americas Corp. (LAC.TO) | 0 | 1 | 1 | 0 | 2.50 |
Lundin Gold Inc. (LUG.TO) | 0 | 0 | 4 | 0 | 3.00 |
Lithium Americas Corp. (LAC.TO) presently has a consensus price target of C$16.44, indicating a potential downside of 37.04%. Lundin Gold Inc. (LUG.TO) has a consensus price target of C$16.18, indicating a potential upside of 62.44%. Given Lundin Gold Inc. (LUG.TO)'s stronger consensus rating and higher possible upside, analysts clearly believe Lundin Gold Inc. (LUG.TO) is more favorable than Lithium Americas Corp. (LAC.TO).
Valuation and Earnings
This table compares Lithium Americas Corp. (LAC.TO) and Lundin Gold Inc. (LUG.TO)'s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Lithium Americas Corp. (LAC.TO) | C$-1,535,000.00 | -1,793.10 | C$-38,160,592.00 | C($0.36) | -72.13 |
Lundin Gold Inc. (LUG.TO) | C$168.91 million | 13.57 | C$-88,801,230.00 | C($0.39) | -25.80 |
Lithium Americas Corp. (LAC.TO) has higher earnings, but lower revenue than Lundin Gold Inc. (LUG.TO). Lithium Americas Corp. (LAC.TO) is trading at a lower price-to-earnings ratio than Lundin Gold Inc. (LUG.TO), indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Lithium Americas Corp. (LAC.TO) and Lundin Gold Inc. (LUG.TO)'s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Lithium Americas Corp. (LAC.TO) | N/A | N/A | N/A |
Lundin Gold Inc. (LUG.TO) | N/A | N/A | N/A |
Summary
Lundin Gold Inc. (LUG.TO) beats Lithium Americas Corp. (LAC.TO) on 6 of the 8 factors compared between the two stocks.