Head to Head Review: Ero Copper (NYSE:ERO) vs. Atlas Lithium (NASDAQ:ATLX)

Ero Copper (NYSE:ERO) and Atlas Lithium (NASDAQ:ATLX) are both materials companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, profitability, institutional ownership, analyst recommendations, valuation, dividends and risk.

Risk and Volatility

Ero Copper has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500. Comparatively, Atlas Lithium has a beta of 0.27, suggesting that its stock price is 73% less volatile than the S&P 500.

Institutional & Insider Ownership

71.3% of Ero Copper shares are owned by institutional investors. Comparatively, 18.4% of Atlas Lithium shares are owned by institutional investors. 22.8% of Atlas Lithium shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Ero Copper and Atlas Lithium”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ero Copper	$785.80 million	3.83	$263.72 million	$3.73	7.73
Atlas Lithium	$90,000.00	537.37	-$28.11 million	($1.56)	-1.05

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

Profitability

This table compares Ero Copper and Atlas Lithium’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ero Copper	32.21%	38.98%	19.98%
Atlas Lithium	N/A	-76.72%	-44.33%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Ero Copper and Atlas Lithium, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ero Copper	1	7	6	1	2.47
Atlas Lithium	1	1	1	0	2.00

Ero Copper currently has a consensus price target of $32.33, suggesting a potential upside of 12.14%. Atlas Lithium has a consensus price target of $11.50, suggesting a potential upside of 601.22%. Given Atlas Lithium’s higher possible upside, analysts plainly believe Atlas Lithium is more favorable than Ero Copper.

Summary

Ero Copper beats Atlas Lithium on 12 of the 15 factors compared between the two stocks.

About Ero Copper

Ero Copper Corp. engages in the exploration, development, and production of mining projects in Brazil. The company is involved in the production and sale of copper concentrate from the Caraíba operations located in the Curaçá Valley, northeastern Bahia state, Brazil, as well as gold and silver by-products. It also holds 100% interests in the Tucumã project, a copper development project located within southeastern Pará state; and the Xavantina Operations located in Mato Grosso state. Ero Copper Corp. was incorporated in 2016 and is headquartered in Vancouver, Canada.

About Atlas Lithium

Atlas Lithium Corporation operates as a mineral exploration and development company in Brazil. It operates the Minas Gerais lithium project that consists of 54 mineral rights covering an area of 59,275 acres located within the Brazilian Eastern Pegmatitic Province; and Northeastern Brazil lithium project, which consists of 7 mineral rights covering an area of 16,266 acres in the States of Paraíba and Rio Grande do Norte in northeastern Brazil. The company also owns 100% interests in various mining concessions for gold, diamond, and industrial sand; and early-stage projects and properties in other minerals, such as nickel, copper, rare earths, graphite, and titanium; as well as participates in iron and quartzite projects. The company was formerly known as Brazil Minerals, Inc. and changed its name to Atlas Lithium Corporation in October 2022. Atlas Lithium Corporation was founded in 2011 and is based in Belo Horizonte, Brazil.