Analyzing NextSource Materials (OTCMKTS:NSRCF) & Aris Mining (NYSE:ARMN)

NextSource Materials (OTCMKTS:NSRCF) and Aris Mining (NYSE:ARMN) are both small-cap basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, risk, analyst recommendations, dividends, institutional ownership and profitability.

Earnings and Valuation

This table compares NextSource Materials and Aris Mining”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NextSource Materials	N/A	N/A	-$9.00 million	($0.07)	-6.52
Aris Mining	$447.67 million	1.42	$11.42 million	($0.02)	-185.50

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

Profitability

This table compares NextSource Materials and Aris Mining’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NextSource Materials	N/A	-18.93%	-11.50%
Aris Mining	-0.66%	4.97%	2.70%

Insider and Institutional Ownership

35.8% of Aris Mining shares are held by institutional investors. 4.6% of NextSource Materials shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

NextSource Materials has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500. Comparatively, Aris Mining has a beta of -0.2, meaning that its stock price is 120% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for NextSource Materials and Aris Mining, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NextSource Materials	0	1	0	0	2.00
Aris Mining	0	0	0	0	0.00

Summary

Aris Mining beats NextSource Materials on 6 of the 11 factors compared between the two stocks.

About NextSource Materials

NextSource Materials Inc. acquires, explores for, and develops mineral properties in Madagascar and Canada. The company primarily explores for graphite and vanadium deposits. Its flagship property is the 100% owned Molo graphite mine project located in the Southern Madagascar Region, Madagascar. The company was formerly known as Energizer Resources Inc. The company was founded in 2004 and is headquartered in Toronto, Canada.

About Aris Mining

Aris Mining Corporation, together with its subsidiaries, engages in the acquisition, exploration, development, and operation of gold properties in Canada, Colombia, and Guyana. It also explores for silver and copper deposits. The company was formerly known as GCM Mining Corp. and changed its name to Aris Mining Corporation in September 2022. Aris Mining Corporation is based in Vancouver, Canada.