Comparing Verify Smart (OTCMKTS:VSMR) and Lithium Americas (Argentina) (NYSE:LAAC)

Lithium Americas (Argentina) (NYSE:LAAC) and Verify Smart (OTCMKTS:VSMR) are both small-cap basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, valuation, profitability, analyst recommendations, earnings, institutional ownership and dividends.

Volatility and Risk

Lithium Americas (Argentina) has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500. Comparatively, Verify Smart has a beta of 3.83, indicating that its stock price is 283% more volatile than the S&P 500.

Profitability

This table compares Lithium Americas (Argentina) and Verify Smart’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lithium Americas (Argentina)	N/A	-1.37%	-1.08%
Verify Smart	N/A	N/A	N/A

Valuation and Earnings

This table compares Lithium Americas (Argentina) and Verify Smart”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lithium Americas (Argentina)	N/A	N/A	$1.29 billion	$7.79	0.27
Verify Smart	$220,000.00	36.26	N/A	N/A	N/A

Lithium Americas (Argentina) has higher earnings, but lower revenue than Verify Smart.

Institutional and Insider Ownership

49.2% of Lithium Americas (Argentina) shares are owned by institutional investors. 19.8% of Lithium Americas (Argentina) shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Lithium Americas (Argentina) and Verify Smart, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lithium Americas (Argentina)	0	2	3	1	2.83
Verify Smart	0	0	0	0	0.00

Lithium Americas (Argentina) currently has a consensus price target of $7.42, suggesting a potential upside of 249.84%. Given Lithium Americas (Argentina)’s stronger consensus rating and higher probable upside, research analysts clearly believe Lithium Americas (Argentina) is more favorable than Verify Smart.

Summary

Lithium Americas (Argentina) beats Verify Smart on 6 of the 10 factors compared between the two stocks.

About Lithium Americas (Argentina)

Lithium Americas (Argentina) Corp. operates as a resource company. The company explores for lithium deposits. The company owns interests in the Cauchari-Olaroz project located in Jujuy province of Argentina. It also has a pipeline of development and exploration stage projects, including the Pastos Grandes project and the Sal de la Puna project located in Salta Province in northwestern Argentina. Lithium Americas (Argentina) Corp. is headquartered in Vancouver, Canada.

About Verify Smart

Verify Smart Corp. provides wireless software solutions focused on IP fraud protection for secure authenticated transactions and celebrity services for fans interactions worldwide. The company's software solutions are delivered as Software as a Service model over the Internet, and allows its clients to access the company's application software and databases. Its products include VerifyNGo, which provides instant personal verification to combat fraud and identity theft through mobile device; and Prvii, a mobile communications service that enables celebrities to monetize their fan base via messaging channels. Verify Smart Corp. promotes its products and services across various markets, including consumer brands, financial services, sports/entertainment, governments, and educational institutions. The company was formerly known as Treasure Explorations Inc. and changed its name to Verify Smart Corp. in March 2009. Verify Smart Corp. was founded in 2006 and is based in Fernley, Nevada.