Analyzing American Lithium (NASDAQ:AMLI) and Jaguar Mining (OTCMKTS:JAGGD)

Jaguar Mining (OTCMKTS:JAGGD) and American Lithium (NASDAQ:AMLI) 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 risk, dividends, profitability, earnings, analyst recommendations, institutional ownership and valuation.

Profitability

This table compares Jaguar Mining and American Lithium’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Jaguar Mining	28.17%	26.75%	17.80%
American Lithium	N/A	-17.25%	-16.87%

Insider & Institutional Ownership

7.7% of American Lithium shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Jaguar Mining has a beta of 2.75, meaning that its share price is 175% more volatile than the S&P 500. Comparatively, American Lithium has a beta of 1.41, meaning that its share price is 41% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Jaguar Mining and American Lithium, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jaguar Mining	0	0	0	0	0.00
American Lithium	0	0	1	1	3.50

American Lithium has a consensus target price of $3.25, suggesting a potential upside of 878.62%. Given American Lithium’s stronger consensus rating and higher probable upside, analysts plainly believe American Lithium is more favorable than Jaguar Mining.

Earnings & Valuation

This table compares Jaguar Mining and American Lithium”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jaguar Mining	$97.23 million	1.52	-$150,000.00	$0.50	4.10
American Lithium	N/A	N/A	-$29.55 million	($0.10)	-3.32

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

Summary

Jaguar Mining beats American Lithium on 8 of the 13 factors compared between the two stocks.

About Jaguar Mining

Jaguar Mining, Inc. engages in the acquisition, exploration, development and operation of gold producing properties in Brazil. Its mining operations include Turmalina, Paciência and Caeté. The firm is also developing the Grurupi Project and exploring the Iron Quadrangle and Pedra Branca Project. The company was founded by Daniel R. Titcomb in 1984 and is headquartered Toronto, Canada.

About American Lithium

American Lithium Corp., an exploration and development stage company, engages in the acquisition, exploration, and development of resource properties in the United States. It principally focuses on the TLC Lithium Project located in the town of Tonopah, Nevada; and the Falchani Lithium project and the Macusani Uranium project located in Puno, Peru. The company was formerly known as Menika Mining Ltd. and changed its name to American Lithium Corp. in April 2016. American Lithium Corp. was incorporated in 1974 and is based in Vancouver, Canada.