Analyzing Western Copper & Gold (NYSE:WRN) and Lithium Americas (Argentina) (NYSE:LAAC)

Western Copper & Gold (NYSE:WRNGet Free Report) and Lithium Americas (Argentina) (NYSE:LAACGet Free Report) are both small-cap basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Profitability

This table compares Western Copper & Gold and Lithium Americas (Argentina)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Western Copper & Gold N/A -3.53% -3.45%
Lithium Americas (Argentina) N/A -1.37% -1.08%

Analyst Recommendations

This is a summary of current ratings and price targets for Western Copper & Gold and Lithium Americas (Argentina), as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Western Copper & Gold 0 0 1 1 3.50
Lithium Americas (Argentina) 0 4 3 1 2.63

Western Copper & Gold presently has a consensus target price of $4.25, indicating a potential upside of 281.17%. Lithium Americas (Argentina) has a consensus target price of $7.05, indicating a potential upside of 112.35%. Given Western Copper & Gold’s stronger consensus rating and higher probable upside, analysts plainly believe Western Copper & Gold is more favorable than Lithium Americas (Argentina).

Risk & Volatility

Western Copper & Gold has a beta of 1.85, indicating that its stock price is 85% more volatile than the S&P 500. Comparatively, Lithium Americas (Argentina) has a beta of 1.33, indicating that its stock price is 33% more volatile than the S&P 500.

Valuation and Earnings

This table compares Western Copper & Gold and Lithium Americas (Argentina)”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Western Copper & Gold N/A N/A -$2.47 million ($0.02) -55.75
Lithium Americas (Argentina) N/A N/A $1.29 billion $7.79 0.43

Western Copper & Gold is trading at a lower price-to-earnings ratio than Lithium Americas (Argentina), indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

22.0% of Western Copper & Gold shares are owned by institutional investors. Comparatively, 49.2% of Lithium Americas (Argentina) shares are owned by institutional investors. 4.6% of Western Copper & Gold shares are owned by company insiders. Comparatively, 19.8% of Lithium Americas (Argentina) shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Lithium Americas (Argentina) beats Western Copper & Gold on 8 of the 11 factors compared between the two stocks.

About Western Copper & Gold

(Get Free Report)

Western Copper and Gold Corporation, an exploration stage company, engages in the exploration and development of mineral properties in Canada. The company explores for gold, copper, silver, and molybdenum deposits. Its principal property is the Casino mineral property that comprise 1,136 full and partial quartz claims, and 55 placer claims located in Yukon, Canada. The company was formerly known as Western Copper Corporation and changed its name to Western Copper and Gold Corporation in October 2011. Western Copper and Gold Corporation was incorporated in 2006 and is headquartered in Vancouver, Canada.

About Lithium Americas (Argentina)

(Get Free Report)

Lithium Americas (Argentina) Corp. operates as a resource company. The company explores for lithium deposits. The company owns interests in the Cauchari-Olaroz project located in Jujuy province of Argentina. It also has a pipeline of development and exploration stage projects, including the Pastos Grandes project and the Sal de la Puna project located in Salta Province in northwestern Argentina. Lithium Americas (Argentina) Corp. is headquartered in Vancouver, Canada.

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