Head-To-Head Comparison: Avalon Advanced Materials (OTCMKTS:AVLNF) & TMC the metals (NASDAQ:TMC)

TMC the metals (NASDAQ:TMC) and Avalon Advanced Materials (OTCMKTS:AVLNF) are both small-cap basic materials companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, valuation, earnings, profitability, institutional ownership, risk and dividends.

Profitability

This table compares TMC the metals and Avalon Advanced Materials’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TMC the metals	N/A	-624.70%	-129.28%
Avalon Advanced Materials	1,416.94%	-2.58%	-2.47%

Earnings & Valuation

This table compares TMC the metals and Avalon Advanced Materials”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TMC the metals	N/A	N/A	-$73.78 million	($0.28)	-3.61
Avalon Advanced Materials	$90,000.00	226.03	-$2.46 million	$0.01	3.60

Avalon Advanced Materials has higher revenue and earnings than TMC the metals. TMC the metals is trading at a lower price-to-earnings ratio than Avalon Advanced Materials, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

4.4% of TMC the metals shares are owned by institutional investors. 30.0% of TMC the metals shares are owned by company insiders. Comparatively, 2.4% of Avalon Advanced Materials shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for TMC the metals and Avalon Advanced Materials, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TMC the metals	0	1	1	0	2.50
Avalon Advanced Materials	0	0	0	0	N/A

TMC the metals presently has a consensus price target of $4.10, suggesting a potential upside of 305.94%. Given TMC the metals’ higher possible upside, analysts plainly believe TMC the metals is more favorable than Avalon Advanced Materials.

Risk & Volatility

TMC the metals has a beta of 1.69, suggesting that its stock price is 69% more volatile than the S&P 500. Comparatively, Avalon Advanced Materials has a beta of 1.49, suggesting that its stock price is 49% more volatile than the S&P 500.

Summary

Avalon Advanced Materials beats TMC the metals on 7 of the 12 factors compared between the two stocks.

About TMC the metals

TMC the metals company Inc., a deep-sea minerals exploration company, focuses on the collection, processing, and refining of polymetallic nodules found on the seafloor in California. It primarily explores for nickel, cobalt, copper, and manganese products. The company holds exploration and commercial rights in three polymetallic nodule contract areas in the Clarion Clipperton Zone of the Pacific Ocean. Its products are used in electric vehicles (EV), renewable energy storage markets, EV wiring, energy transmission, manganese alloy production required for steel production, and other applications. The company was formerly known as Sustainable Opportunities Acquisition Corporation and changed its name to TMC the metals company Inc. TMC the metals company Inc. was founded in 2011 and is based in Vancouver, Canada.

About Avalon Advanced Materials

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.