BHP Group (NYSE:BHP) and American Lithium (OTCMKTS:LIACF) Head-To-Head Comparison

BHP Group (NYSE:BHP) and American Lithium (OTCMKTS:LIACF) are both basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, risk, dividends, earnings, analyst recommendations, institutional ownership and profitability.

Earnings and Valuation

This table compares BHP Group and American Lithium’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BHP Group	$53.82 billion	2.73	$12.92 billion	N/A	N/A
American Lithium	N/A	N/A	-$18.80 million	($0.11)	-5.09

BHP Group has higher revenue and earnings than American Lithium.

Profitability

This table compares BHP Group and American Lithium’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BHP Group	N/A	N/A	N/A
American Lithium	N/A	-16.28%	-15.96%

Institutional and Insider Ownership

3.8% of BHP Group shares are held by institutional investors. Comparatively, 0.0% of American Lithium shares are held by institutional investors. 0.0% of BHP Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for BHP Group and American Lithium, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BHP Group	0	5	3	0	2.38
American Lithium	0	0	0	0	N/A

BHP Group presently has a consensus price target of $50.00, suggesting a potential downside of 13.79%. Given BHP Group’s higher probable upside, equities research analysts clearly believe BHP Group is more favorable than American Lithium.

Risk & Volatility

BHP Group has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500. Comparatively, American Lithium has a beta of 1.48, suggesting that its share price is 48% more volatile than the S&P 500.

Summary

BHP Group beats American Lithium on 8 of the 9 factors compared between the two stocks.

About BHP Group

BHP Group Limited operates as a resources company in Australia, Europe, China, Japan, India, South Korea, the rest of Asia, North America, South America, and internationally. The company operates through Copper, Iron Ore, and Coal segments. It engages in the mining of copper, silver, zinc, molybdenum, uranium, gold, iron ore, and metallurgical and energy coal. The company is also involved in mining, smelting, and refining of nickel; and potash development activities. In addition, it provides towing, freight, marketing and trading, marketing support, finance, administrative, and other services. BHP Group Limited was founded in 1851 and is headquartered in Melbourne, Australia.

About American Lithium

American Lithium Corp., an exploration stage company, engages in the identification, acquisition, exploration, and development of resource properties in the United States. It principally focuses on the TLC Claystones project covering an area of approximately 5,052 hectares located in the town of Tonopah, Nevada; and the Falchani Lithium project and the Macusani Uranium project located in Puno, Peru. The company was formerly known as Menika Mining Ltd. and changed its name to American Lithium Corp. in April 2016. American Lithium Corp. was incorporated in 1974 and is headquartered in Vancouver, Canada.