Avalon Advanced Materials (OTCMKTS:AVLNF) and Rio Tinto (NYSE:RIO) are both basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, dividends, profitability, institutional ownership, earnings and analyst recommendations.
This table compares Avalon Advanced Materials and Rio Tinto’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Avalon Advanced Materials||-1,709.52%||-2.03%||-1.93%|
Insider & Institutional Ownership
0.0% of Avalon Advanced Materials shares are held by institutional investors. Comparatively, 7.4% of Rio Tinto shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Volatility and Risk
Avalon Advanced Materials has a beta of -0.58, suggesting that its stock price is 158% less volatile than the S&P 500. Comparatively, Rio Tinto has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500.
This is a summary of recent recommendations and price targets for Avalon Advanced Materials and Rio Tinto, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Avalon Advanced Materials||0||0||0||0||N/A|
Rio Tinto has a consensus price target of $1,404.08, suggesting a potential upside of 2,476.29%. Given Rio Tinto’s higher possible upside, analysts clearly believe Rio Tinto is more favorable than Avalon Advanced Materials.
Valuation & Earnings
This table compares Avalon Advanced Materials and Rio Tinto’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Avalon Advanced Materials||$40,000.00||296.60||-$2.55 million||N/A||N/A|
|Rio Tinto||$40.52 billion||1.71||$13.64 billion||$5.07||10.75|
Rio Tinto has higher revenue and earnings than Avalon Advanced Materials.
Rio Tinto beats Avalon Advanced Materials on 9 of the 10 factors compared between the two stocks.
Avalon Advanced Materials Company Profile
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.
Rio Tinto Company Profile
Rio Tinto Group engages in finding, mining, and processing mineral resources worldwide. The company offers aluminium, silver, molybdenum, copper, diamonds, gold, borates, titanium dioxide, salt, iron ore, and uranium. It is also involved in the alumina production; primary aluminium smelting; bauxite mining; alumina refining; and ilmenite mining, as well as provision of gypsum. Rio Tinto Group is headquartered in London, the United Kingdom.
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