Financial Analysis: Foremost Lithium Resource & Technology (NASDAQ:FMST) versus Nouveau Monde Graphite (NYSE:NMG)

Foremost Lithium Resource & Technology (NASDAQ:FMST) and Nouveau Monde Graphite (NYSE:NMG) are both small-cap basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, dividends and valuation.

Earnings & Valuation

This table compares Foremost Lithium Resource & Technology and Nouveau Monde Graphite’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Foremost Lithium Resource & Technology	N/A	N/A	-$3.32 million	($0.73)	-4.04
Nouveau Monde Graphite	N/A	N/A	-$41.47 million	($0.72)	-2.19

Foremost Lithium Resource & Technology is trading at a lower price-to-earnings ratio than Nouveau Monde Graphite, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

0.1% of Foremost Lithium Resource & Technology shares are owned by institutional investors. Comparatively, 41.1% of Nouveau Monde Graphite shares are owned by institutional investors. 22.7% of Nouveau Monde Graphite shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations for Foremost Lithium Resource & Technology and Nouveau Monde Graphite, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Foremost Lithium Resource & Technology	0	0	0	0	N/A
Nouveau Monde Graphite	0	0	1	0	3.00

Nouveau Monde Graphite has a consensus target price of $3.25, indicating a potential upside of 106.35%. Given Nouveau Monde Graphite’s higher probable upside, analysts clearly believe Nouveau Monde Graphite is more favorable than Foremost Lithium Resource & Technology.

Profitability

This table compares Foremost Lithium Resource & Technology and Nouveau Monde Graphite’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Foremost Lithium Resource & Technology	N/A	-35.40%	-29.50%
Nouveau Monde Graphite	N/A	-94.13%	-50.48%

Summary

Nouveau Monde Graphite beats Foremost Lithium Resource & Technology on 6 of the 9 factors compared between the two stocks.

About Foremost Lithium Resource & Technology

Foremost Lithium Resource & Technology Ltd., an exploration stage company, engages in the hard-rock exploration and acquisition of lithium properties in Canada. Its lithium properties cover approximately 43,000 acres in Snow Lake, Manitoba, and hosts a Lac Simard South property in a lithium camp situated on approximately 11,400 acres in Quebec. The company's flagship lithium lane projects, as well as its Lac Simard South project are located at the tip of the NAFTA superhighway. It also has Winston gold/silver property in New Mexico, the United States. The company was formerly known as Far Resources Ltd. and changed its name to Foremost Lithium Resource & Technology Ltd. in January 2022. Foremost Lithium Resource & Technology Ltd. was incorporated in 2005 and is headquartered in Vancouver, Canada.

About Nouveau Monde Graphite

Nouveau Monde Graphite Inc. engages in the acquisition, exploration, development, and evaluation of mineral properties in Canada. It primarily explores for graphite. The company's holds interest in the Matawinie Mine Project and the Battery Material Plant project situated in the Montreal, Quebec. It also engages in the real estate and trading businesses. The company was formerly known as Nouveau Monde Mining Enterprises Inc. and changed its name to Nouveau Monde Graphite Inc. in February 2017. Nouveau Monde Graphite Inc. was founded in 2011 and is headquartered in Saint-Michel-des-Saints, Canada.