Reviewing Avalon Rare Metals (OTCMKTS:AVLNF) and Fortuna Mining (NYSE:FSM)

Fortuna Mining (NYSE:FSM) and Avalon Rare Metals (OTCMKTS:AVLNF) are both basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, valuation, dividends and analyst recommendations.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Fortuna Mining and Avalon Rare Metals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fortuna Mining	1	2	4	0	2.43
Avalon Rare Metals	0	0	0	0	0.00

Fortuna Mining currently has a consensus target price of $9.50, indicating a potential downside of 0.37%. Given Fortuna Mining’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Fortuna Mining is more favorable than Avalon Rare Metals.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Fortuna Mining	21.48%	12.42%	8.88%
Avalon Rare Metals	-10,634.21%	-4.50%	-4.14%

Risk & Volatility

Fortuna Mining has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500. Comparatively, Avalon Rare Metals has a beta of -0.05, indicating that its share price is 105% less volatile than the S&P 500.

Insider and Institutional Ownership

33.8% of Fortuna Mining shares are held by institutional investors. 1.0% of Fortuna Mining shares are held by insiders. Comparatively, 2.4% of Avalon Rare Metals shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Fortuna Mining and Avalon Rare Metals”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fortuna Mining	$1.26 billion	2.33	$128.74 million	$0.72	13.24
Avalon Rare Metals	$40,000.00	792.91	-$3.72 million	N/A	N/A

Fortuna Mining has higher revenue and earnings than Avalon Rare Metals.

Summary

Fortuna Mining beats Avalon Rare Metals on 10 of the 12 factors compared between the two stocks.

About Fortuna Mining

Fortuna Mining Corp. engages in the precious and base metal mining in Argentina, Burkina Faso, Mexico, Peru, and Côte d’Ivoire. It operates through Mansfield, Sanu, Sango, Cuzcatlan, Bateas, and Corporate segments. The company primarily explores for silver, lead, zinc, and gold. Its flagship project is the Séguéla gold mine, which consists of approximately 62,000 hectares and is located in the Worodougou Region of the Woroba District, Côte d’Ivoire. The company was formerly known as Fortuna Silver Mines Inc. and changed its name to Fortuna Mining Corp. in June 2024. Fortuna Mining Corp. was incorporated in 1990 and is based in Vancouver, Canada.

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.