Comparing Hycroft Mining (NASDAQ:HYMC) and Avalon Rare Metals (OTCMKTS:AVLNF)

Avalon Rare Metals (OTCMKTS:AVLNF) and Hycroft Mining (NASDAQ:HYMC) are both small-cap basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, valuation, analyst recommendations, earnings, institutional ownership and profitability.

Profitability

This table compares Avalon Rare Metals and Hycroft Mining’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Avalon Rare Metals	-10,634.21%	-4.50%	-4.14%
Hycroft Mining	N/A	N/A	-27.55%

Risk and Volatility

Avalon Rare Metals has a beta of -0.02, suggesting that its stock price is 102% less volatile than the S&P 500. Comparatively, Hycroft Mining has a beta of 2.71, suggesting that its stock price is 171% more volatile than the S&P 500.

Insider and Institutional Ownership

7.4% of Hycroft Mining shares are held by institutional investors. 2.4% of Avalon Rare Metals shares are held by insiders. Comparatively, 1.3% of Hycroft Mining shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Avalon Rare Metals and Hycroft Mining”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Avalon Rare Metals	$40,000.00	636.72	-$3.72 million	N/A	N/A
Hycroft Mining	$33.23 million	28.41	-$60.90 million	($1.62)	-7.20

Avalon Rare Metals has higher earnings, but lower revenue than Hycroft Mining.

Analyst Ratings

This is a summary of current ratings and recommmendations for Avalon Rare Metals and Hycroft Mining, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Avalon Rare Metals	0	0	0	0	0.00
Hycroft Mining	1	0	0	0	1.00

Summary

Hycroft Mining beats Avalon Rare Metals on 6 of the 10 factors compared between the two stocks.

About Avalon Rare Metals

Avalon Advanced Materials Inc., together with its subsidiaries, engages in the acquisition, exploration, evaluation, and development of rare metal and mineral properties primarily in Canada. The company focuses on exploring lithium, tantalum, cesium, indium, gallium, germanium, tin, yttrium, and zirconium deposits, as well as rare earth elements. Its flagship project is the 100% owned Separation Rapids Lithium Project consisting of nineteen mineral claims and one mining lease covering an area of approximately 4,414 hectares located in the Paterson Lake Area, Kenora Mining Division, Ontario. 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. is headquartered in Toronto, Canada.

About Hycroft Mining

Hycroft Mining Holding Corporation, together with its subsidiaries, operates as a gold and silver development company in the United States. The company holds interests in the Hycroft mine that consists of 30 private parcels with patented claims comprising approximately 1,787 acres, and 3,247 unpatented mining claims that encompass approximately 62,298 acres located in the state of Nevada. Hycroft Mining Holding Corporation is based in Winnemucca, Nevada.