Avalon Advanced Materials (OTCMKTS:AVLNF) and Vale (NYSE:VALE) are both basic materials companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, earnings, profitability, dividends, risk, institutional ownership and analyst recommendations.
Vale pays an annual dividend of $0.04 per share and has a dividend yield of 0.3%. Avalon Advanced Materials does not pay a dividend. Vale pays out 2.2% of its earnings in the form of a dividend.
0.0% of Avalon Advanced Materials shares are held by institutional investors. Comparatively, 19.5% of Vale shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This table compares Avalon Advanced Materials and Vale’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Avalon Advanced Materials||-5,740.82%||-3.12%||-3.00%|
This is a breakdown of recent ratings for Avalon Advanced Materials and Vale, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Avalon Advanced Materials||0||0||0||0||N/A|
Vale has a consensus target price of $13.44, indicating a potential upside of 9.36%. Given Vale’s higher possible upside, analysts plainly believe Vale is more favorable than Avalon Advanced Materials.
Volatility and Risk
Avalon Advanced Materials has a beta of 1.31, meaning that its share price is 31% more volatile than the S&P 500. Comparatively, Vale has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500.
Earnings and Valuation
This table compares Avalon Advanced Materials and Vale’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Avalon Advanced Materials||$50,000.00||233.81||-$2.53 million||N/A||N/A|
|Vale||$36.58 billion||1.75||$6.86 billion||$1.85||6.64|
Vale has higher revenue and earnings than Avalon Advanced Materials.
Vale beats Avalon Advanced Materials on 9 of the 12 factors compared between the two stocks.
About Avalon Advanced Materials
Avalon Advanced Materials Inc., together with its subsidiaries, engages in the exploration and development of mineral properties primarily in Canada. The company focuses on rare metals and minerals, including lithium, tantalum, niobium, cesium, indium, gallium, germanium, rare earth elements, yttrium, and zirconium, as well as tin. It focuses on the Nechalacho project, which comprises 5 contiguous mining leases covering an area of 10,449 acres and 3 claims covering an area of 4,597 acres located at Thor Lake in the Mackenzie Mining District of the Northwest Territories; the Separation Rapids Lithium project, which consists of 15 mineral claims and 1 mining claim lease covering an area of approximately 2,869 hectares located in the Paterson Lake Area of the Kenora Mining Division, Ontario; and the East Kemptville Tin-Indium project located northeast of Yarmouth in Yarmouth County, southwestern Nova Scotia. It also owns royalty interests in 2 exploration projects. The company was formerly known as Avalon Rare Metals Inc. and changed its name to Avalon Advanced Materials Inc. in February 2016. Avalon Advanced Materials Inc. was founded in 1991 and is headquartered in Toronto, Canada.
Vale S.A., together with its subsidiaries, produces and sells iron ore and iron ore pellets for use as raw materials in steelmaking in Brazil and internationally. It operates through Ferrous Minerals, Coal, and Base Metals segments. The Ferrous Minerals segment produces and extracts iron ore and pellets, manganese, ferroalloys, and others ferrous products and services; and provides related logistic services. The Coal segment is involved in the extraction of metallurgical and thermal coal; and provides related logistic services. The Base Metals segment produces and extracts non-ferrous minerals, including nickel; and its by-products, such as copper, gold, silver, cobalt, precious metals, and others. The company was formerly known as Companhia Vale do Rio Doce and changed its name to Vale S.A. in May 2009. Vale S.A. was founded in 1942 and is headquartered in Rio de Janeiro, Brazil.
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