Head-To-Head Survey: Lithium Americas (LAC) versus North American Palladium (PALDF)

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

Profitability

This table compares Lithium Americas and North American Palladium’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lithium Americas -583.67% -24.47% -21.87%
North American Palladium 30.26% 16.65% 12.90%

Risk & Volatility

Lithium Americas has a beta of 2.05, indicating that its share price is 105% more volatile than the S&P 500. Comparatively, North American Palladium has a beta of 2.07, indicating that its share price is 107% more volatile than the S&P 500.

Valuation and Earnings

This table compares Lithium Americas and North American Palladium’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lithium Americas $4.84 million 73.52 -$28.27 million ($0.26) -15.42
North American Palladium $306.17 million 1.71 $91.96 million N/A N/A

North American Palladium has higher revenue and earnings than Lithium Americas.

Analyst Recommendations

This is a summary of recent recommendations for Lithium Americas and North American Palladium, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lithium Americas 0 1 3 0 2.75
North American Palladium 0 0 0 0 N/A

Lithium Americas currently has a consensus target price of $9.50, suggesting a potential upside of 136.91%. Given Lithium Americas’ higher possible upside, equities research analysts plainly believe Lithium Americas is more favorable than North American Palladium.

Institutional and Insider Ownership

6.0% of Lithium Americas shares are owned by institutional investors. 1.0% of North American Palladium shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

North American Palladium pays an annual dividend of $0.09 per share and has a dividend yield of 1.0%. Lithium Americas does not pay a dividend.

Summary

North American Palladium beats Lithium Americas on 9 of the 13 factors compared between the two stocks.

Lithium Americas Company Profile

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.

North American Palladium Company Profile

North American Palladium Ltd. produces precious metals in Canada. It explores for palladium, platinum, gold, nickel, copper, and other metals. It primarily holds interest in the Lac des Iles mine that is located to the northwest of Thunder Bay, Ontario. The company was founded in 1968 and is headquartered in Toronto, Canada.

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