Comparing Sigma Lithium (NASDAQ:SGML) & Lomiko Metals (OTCMKTS:LMRMF)

Lomiko Metals (OTCMKTS:LMRMF) and Sigma Lithium (NASDAQ:SGML) 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 earnings, analyst recommendations, valuation, institutional ownership, dividends, risk and profitability.

Valuation and Earnings

This table compares Lomiko Metals and Sigma Lithium’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lomiko Metals	N/A	N/A	-$1.46 million	N/A	N/A
Sigma Lithium	$134.24 million	9.23	-$28.33 million	($0.13)	-86.00

Lomiko Metals has higher earnings, but lower revenue than Sigma Lithium.

Profitability

This table compares Lomiko Metals and Sigma Lithium’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lomiko Metals	N/A	-13.51%	-12.99%
Sigma Lithium	N/A	-8.62%	-3.68%

Insider and Institutional Ownership

64.9% of Sigma Lithium shares are owned by institutional investors. 48.6% of Sigma Lithium 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.

Volatility and Risk

Lomiko Metals has a beta of 2.05, suggesting that its stock price is 105% more volatile than the S&P 500. Comparatively, Sigma Lithium has a beta of 0.18, suggesting that its stock price is 82% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Lomiko Metals and Sigma Lithium, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lomiko Metals	0	0	0	0	N/A
Sigma Lithium	0	0	2	0	3.00

Sigma Lithium has a consensus price target of $29.50, suggesting a potential upside of 164.34%. Given Sigma Lithium’s higher probable upside, analysts plainly believe Sigma Lithium is more favorable than Lomiko Metals.

Summary

Sigma Lithium beats Lomiko Metals on 7 of the 9 factors compared between the two stocks.

About Lomiko Metals

Lomiko Metals Inc. engages in the acquisition, exploration, and development of resource properties in Canada. It explores for graphite and lithium deposits. The company's flagship project is its 100% owned La Loutre graphite property located in Laurentian region of Quebec. The company was formerly known as Lomiko Resources Inc. and changed its name to Lomiko Metals Inc. in October 2008. Lomiko Metals Inc. was incorporated in 1987 and is based in Surrey, Canada.

About Sigma Lithium

Sigma Lithium Corporation engages in the exploration and development of lithium deposits in Brazil. It holds a 100% interest in the Grota do Cirilo, Genipapo, Santa Clara, and São José properties comprising 29 mineral rights covering an area of approximately 185 square kilometers located in the Araçuaí and Itinga regions of the state of Minas Gerais, Brazil. It serves electric vehicle industries worldwide. The company was formerly known as Sigma Lithium Resources Corporation and changed its name to Sigma Lithium Corporation in July 2021. The company is headquartered in São Paulo, Brazil.