Analyzing Lithium Americas (LAC) and The Competition

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Lithium Americas (NYSE: LAC) is one of 50 public companies in the “Metal mining” industry, but how does it compare to its rivals? We will compare Lithium Americas to similar businesses based on the strength of its institutional ownership, earnings, analyst recommendations, valuation, profitability, risk and dividends.

Profitability

This table compares Lithium Americas and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lithium Americas -860.20% -28.03% -26.85%
Lithium Americas Competitors -326.96% -26.57% -6.69%

Valuation and Earnings

This table compares Lithium Americas and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Lithium Americas $4.29 million -$33.25 million -10.00
Lithium Americas Competitors $6.29 billion $843.29 million 16.23

Lithium Americas’ rivals have higher revenue and earnings than Lithium Americas. Lithium Americas is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Lithium Americas and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lithium Americas 0 1 2 0 2.67
Lithium Americas Competitors 361 1145 1342 82 2.39

Lithium Americas currently has a consensus price target of $9.50, indicating a potential upside of 115.91%. As a group, “Metal mining” companies have a potential upside of 27.66%. Given Lithium Americas’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Lithium Americas is more favorable than its rivals.

Insider & Institutional Ownership

8.2% of Lithium Americas shares are owned by institutional investors. Comparatively, 22.9% of shares of all “Metal mining” companies are owned by institutional investors. 8.8% of shares of all “Metal mining” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Lithium Americas rivals beat Lithium Americas on 9 of the 12 factors compared.

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 the Lithium Nevada Project covering approximately 15,233 hectares of area located in northwestern 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.

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