Comparing Atlas Lithium (NASDAQ:ATLX) & Avalon Rare Metals (OTCMKTS:AVLNF)

Avalon Rare Metals (OTCMKTS:AVLNF) and Atlas Lithium (NASDAQ:ATLX) are both small-cap basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, risk, profitability and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Avalon Rare Metals	-5,445.83%	-4.41%	-4.05%
Atlas Lithium	-9,881.20%	-120.64%	-51.32%

Institutional & Insider Ownership

18.4% of Atlas Lithium shares are owned by institutional investors. 2.4% of Avalon Rare Metals shares are owned by company insiders. Comparatively, 37.3% of Atlas Lithium shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Avalon Rare Metals and Atlas Lithium”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Avalon Rare Metals	$40,000.00	1,227.26	-$3.72 million	N/A	N/A
Atlas Lithium	$180,455.00	729.13	-$42.24 million	($1.93)	-2.83

Avalon Rare Metals has higher earnings, but lower revenue than Atlas Lithium.

Volatility and Risk

Avalon Rare Metals has a beta of -0.05, meaning that its share price is 105% less volatile than the S&P 500. Comparatively, Atlas Lithium has a beta of -0.75, meaning that its share price is 175% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Avalon Rare Metals and Atlas Lithium, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Avalon Rare Metals	0	0	0	0	0.00
Atlas Lithium	1	0	1	0	2.00

Atlas Lithium has a consensus price target of $12.00, indicating a potential upside of 119.38%. Given Atlas Lithium’s stronger consensus rating and higher possible upside, analysts plainly believe Atlas Lithium is more favorable than Avalon Rare Metals.

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 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.