Comparing Lithium Americas (NYSE:LAC) and Perpetua Resources (NASDAQ:PPTA)

Perpetua Resources (NASDAQ:PPTA) and Lithium Americas (NYSE:LAC) are both basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Insider and Institutional Ownership

70.1% of Perpetua Resources shares are held by institutional investors. 1.5% of Perpetua Resources shares are held by company insiders. Comparatively, 1.1% of Lithium Americas shares are held by company 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.

Earnings & Valuation

This table compares Perpetua Resources and Lithium Americas”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Perpetua Resources	N/A	N/A	-$14.48 million	($0.31)	-69.61
Lithium Americas	N/A	N/A	-$42.53 million	($1.05)	-4.25

Perpetua Resources is trading at a lower price-to-earnings ratio than Lithium Americas, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings for Perpetua Resources and Lithium Americas, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Perpetua Resources	1	0	7	2	3.00
Lithium Americas	2	11	2	0	2.00

Perpetua Resources presently has a consensus target price of $29.00, suggesting a potential upside of 34.38%. Lithium Americas has a consensus target price of $5.33, suggesting a potential upside of 19.45%. Given Perpetua Resources’ stronger consensus rating and higher probable upside, research analysts plainly believe Perpetua Resources is more favorable than Lithium Americas.

Profitability

This table compares Perpetua Resources and Lithium Americas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Perpetua Resources	N/A	-11.07%	-10.57%
Lithium Americas	N/A	-7.99%	-4.41%

Risk & Volatility

Perpetua Resources has a beta of 0.02, suggesting that its stock price is 98% less volatile than the S&P 500. Comparatively, Lithium Americas has a beta of 1.41, suggesting that its stock price is 41% more volatile than the S&P 500.

Summary

Perpetua Resources beats Lithium Americas on 8 of the 12 factors compared between the two stocks.

About Perpetua Resources

Perpetua Resources Corp. engages in the exploration and development of mineral properties in the United States. The company primarily explores for gold, silver, and antimony deposits. Its principal asset is the 100% owned Stibnite Gold project, which includes 1,672 unpatented lode claims, mill sites, and patented land holdings covering an area of approximately 11,548 hectares located in Valley County, Idaho. The company was formerly known as Midas Gold Corp. and changed its name to Perpetua Resources Corp. in February 2021. Perpetua Resources Corp. was incorporated in 2011 and is headquartered in Boise, Idaho.

About Lithium Americas

Lithium Americas Corp. engages in the exploration and development of lithium properties in the United States and Canada. It holds a 100% interest in the Thacker Pass project located in northern Nevada, as well as investments in exploration properties in the United States and Canada. Lithium Americas Corp. was incorporated in 2023 and is headquartered in Vancouver, Canada.