Sigma Lithium (NASDAQ:SGML) & First Majestic Silver (NYSE:AG) Head to Head Survey

Sigma Lithium (NASDAQ:SGML) and First Majestic Silver (NYSE:AG) are both materials companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, analyst recommendations, earnings and valuation.

Profitability

This table compares Sigma Lithium and First Majestic Silver’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sigma Lithium	-19.36%	-37.40%	-7.66%
First Majestic Silver	21.18%	13.36%	9.20%

Insider and Institutional Ownership

64.9% of Sigma Lithium shares are owned by institutional investors. Comparatively, 27.2% of First Majestic Silver shares are owned by institutional investors. 48.6% of Sigma Lithium shares are owned by insiders. Comparatively, 0.9% of First Majestic Silver shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Sigma Lithium and First Majestic Silver”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sigma Lithium	$142.49 million	7.43	-$50.19 million	($0.24)	-39.17
First Majestic Silver	$1.65 billion	5.29	$164.92 million	$0.71	24.93

First Majestic Silver has higher revenue and earnings than Sigma Lithium. Sigma Lithium is trading at a lower price-to-earnings ratio than First Majestic Silver, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Sigma Lithium has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500. Comparatively, First Majestic Silver has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Sigma Lithium and First Majestic Silver, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sigma Lithium	3	0	4	0	2.14
First Majestic Silver	0	3	5	1	2.78

Sigma Lithium currently has a consensus target price of $17.38, indicating a potential upside of 84.84%. First Majestic Silver has a consensus target price of $23.83, indicating a potential upside of 34.67%. Given Sigma Lithium’s higher possible upside, equities analysts clearly believe Sigma Lithium is more favorable than First Majestic Silver.

Summary

First Majestic Silver beats Sigma Lithium on 11 of the 15 factors compared between the two stocks.

About Sigma Lithium

Sigma Lithium Corporation engages in the exploration and development of lithium deposits in Brazil. It holds a 100% interest in the Grota do Cirilo, Genipapo, Santa Clara, and São José properties comprising 29 mineral rights covering an area of approximately 185 square kilometers located in the Araçuaí and Itinga regions of the state of Minas Gerais, Brazil. It serves electric vehicle industries worldwide. The company was formerly known as Sigma Lithium Resources Corporation and changed its name to Sigma Lithium Corporation in July 2021. The company is headquartered in São Paulo, Brazil.

About First Majestic Silver

First Majestic Silver Corp. engages in the acquisition, exploration, development, and production of mineral properties with a focus on silver and gold production in North America. Its projects include the San Dimas mine covering an area of approximately 71,867 hectares located in Durango State, Mexico; the Santa Elena that covers an area of approximately 102,244 hectares located in Sonora State, México; and the La Encantada covering an area of approximately 4,076 hectares located in Coahuila State, México. The company was formerly known as First Majestic Resource Corp. and changed its name to First Majestic Silver Corp. in November 2006. First Majestic Silver Corp. was incorporated in 1979 and is headquartered in Vancouver, Canada.