Critical Contrast: Avalon Rare Metals (AVLNF) versus Its Rivals

Avalon Rare Metals (OTCMKTS:AVLNF) is one of 1,984 public companies in the “Metals & Mining” industry, but how does it compare to its peers? We will compare Avalon Rare Metals to similar companies based on the strength of its institutional ownership, risk, dividends, analyst recommendations, valuation, profitability and earnings.

Profitability

This table compares Avalon Rare Metals and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Avalon Rare Metals	-10,843.52%	-11.10%	-10.24%
Avalon Rare Metals Competitors	-1,164,884,689,320,590,400.00%	-52.92%	-2.03%

Volatility & Risk

Avalon Rare Metals has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500. Comparatively, Avalon Rare Metals’ peers have a beta of 0.96, meaning that their average share price is 4% less volatile than the S&P 500.

Valuation & Earnings

This table compares Avalon Rare Metals and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Avalon Rare Metals	$190,000.00	-$20.85 million	-0.03
Avalon Rare Metals Competitors	$174.73 billion	$278.94 million	-26.29

Avalon Rare Metals’ peers have higher revenue and earnings than Avalon Rare Metals. Avalon Rare Metals is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a breakdown of recent ratings for Avalon Rare Metals and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Avalon Rare Metals	0	1	0	0	2.00
Avalon Rare Metals Competitors	6407	22611	32309	1801	2.47

As a group, “Metals & Mining” companies have a potential upside of 23.51%. Given Avalon Rare Metals’ peers stronger consensus rating and higher probable upside, analysts plainly believe Avalon Rare Metals has less favorable growth aspects than its peers.

Insider & Institutional Ownership

16.0% of shares of all “Metals & Mining” companies are held by institutional investors. 2.4% of Avalon Rare Metals shares are held by insiders. Comparatively, 17.7% of shares of all “Metals & Mining” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Avalon Rare Metals peers beat Avalon Rare Metals on 10 of the 13 factors compared.

About Avalon Rare Metals

Avalon Advanced Materials Inc., together with its subsidiaries, engages in the acquisition, exploration, evaluation, and development of rare metal and mineral properties primarily in Canada. The company focuses on exploring lithium, tantalum, cesium, indium, gallium, germanium, tin, yttrium, and zirconium deposits, as well as rare earth elements. Its flagship project is the 100% owned Separation Rapids Lithium Project consisting of nineteen mineral claims and one mining lease covering an area of approximately 4,414 hectares located in the Paterson Lake Area, Kenora Mining Division, Ontario. The company was formerly known as Avalon Rare Metals Inc. and changed its name to Avalon Advanced Materials Inc. in February 2016. Avalon Advanced Materials Inc. is headquartered in Toronto, Canada.