Head-To-Head Contrast: New Gold (NYSE:NGD) & American Lithium Minerals (OTCMKTS:AMLM)

American Lithium Minerals (OTCMKTS:AMLM) and New Gold (NYSE:NGD) are both basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.

Insider & Institutional Ownership

42.8% of New Gold shares are owned by institutional investors. 0.2% of New Gold 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.

Analyst Ratings

This is a breakdown of current ratings and price targets for American Lithium Minerals and New Gold, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Lithium Minerals	0	0	0	0	0.00
New Gold	0	1	4	2	3.14

New Gold has a consensus target price of $3.60, indicating a potential upside of 33.33%. Given New Gold’s stronger consensus rating and higher probable upside, analysts plainly believe New Gold is more favorable than American Lithium Minerals.

Earnings and Valuation

This table compares American Lithium Minerals and New Gold”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Lithium Minerals	$90,000.00	21.38	N/A	N/A	N/A
New Gold	$924.50 million	2.31	-$64.50 million	$0.13	20.77

American Lithium Minerals has higher earnings, but lower revenue than New Gold.

Volatility and Risk

American Lithium Minerals has a beta of -1, suggesting that its share price is 200% less volatile than the S&P 500. Comparatively, New Gold has a beta of 1.36, suggesting that its share price is 36% more volatile than the S&P 500.

Profitability

This table compares American Lithium Minerals and New Gold’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Lithium Minerals	N/A	N/A	N/A
New Gold	11.10%	13.70%	6.31%

Summary

New Gold beats American Lithium Minerals on 11 of the 12 factors compared between the two stocks.

About American Lithium Minerals

American Lithium Minerals, Inc., engages in mineral exploration for lithium and rare earth minerals in the United States. The company's properties include Stonewall Flat Lithium project that covers an area of approximately 1,250 acres on Stonewall Playa in Nevada's Lida Valley Basin; and Kingman Rare Earth project comprising two individual properties, which include Kingman Feldspar Mine and the Mineral X property. It also holds interest in Silver Peak Lithium, a claystone lithium prospect comprising 24 lode mining claims located in Esmeralda County; and West End Lithium property that comprises 24 lode mining claims located in Nye County, Nevada. The company was formerly known as Nugget Resources Inc. and changed its name to American Lithium Minerals, Inc. in March 2009. The company was incorporated in 2005 and is based in Las Vegas, Nevada..

About New Gold

New Gold Inc., an intermediate gold mining company, develops and operates of mineral properties in Canada. It primarily explores for gold, silver, and copper deposits. The company’s principal operating properties include 100% interest in the Rainy River mine located in Northwestern Ontario, Canada; and New Afton project situated in South-Central British Columbia. New Gold Inc. is headquartered in Toronto, Canada.