Head to Head Analysis: Lithium Americas (Argentina) (NYSE:LAAC) and Westwater Resources (NASDAQ:WWR)

Westwater Resources (NASDAQ:WWR) and Lithium Americas (Argentina) (NYSE:LAAC) 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 valuation, institutional ownership, profitability, analyst recommendations, earnings, dividends and risk.

Insider and Institutional Ownership

7.7% of Westwater Resources shares are owned by institutional investors. Comparatively, 49.2% of Lithium Americas (Argentina) shares are owned by institutional investors. 2.4% of Westwater Resources shares are owned by company insiders. Comparatively, 19.8% of Lithium Americas (Argentina) shares are owned 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.

Profitability

This table compares Westwater Resources and Lithium Americas (Argentina)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Westwater Resources	N/A	-5.89%	-5.50%
Lithium Americas (Argentina)	N/A	-1.37%	-1.08%

Valuation & Earnings

This table compares Westwater Resources and Lithium Americas (Argentina)”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Westwater Resources	N/A	N/A	-$7.75 million	($0.25)	-4.20
Lithium Americas (Argentina)	N/A	N/A	$1.29 billion	$7.79	1.03

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

Analyst Recommendations

This is a summary of current ratings and price targets for Westwater Resources and Lithium Americas (Argentina), as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Westwater Resources	0	0	1	0	3.00
Lithium Americas (Argentina)	0	0	0	0	0.00

Westwater Resources presently has a consensus target price of $1.75, indicating a potential upside of 66.67%. Given Westwater Resources’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Westwater Resources is more favorable than Lithium Americas (Argentina).

Volatility and Risk

Westwater Resources has a beta of 1.49, indicating that its share price is 49% more volatile than the S&P 500. Comparatively, Lithium Americas (Argentina) has a beta of 1.35, indicating that its share price is 35% more volatile than the S&P 500.

Summary

Lithium Americas (Argentina) beats Westwater Resources on 7 of the 11 factors compared between the two stocks.

About Westwater Resources

Westwater Resources, Inc. operates as an energy technology company, focuses on developing battery-grade natural graphite materials. The company holds interests in Kellyton Graphite Plant located in Kellyton, Alabama; and Bama Mine Project situated in south Alabama. It holds interests in Coosa graphite project located in Coosa County, Alabama. The company was formerly known as Uranium Resources, Inc. and changed its name to Westwater Resources, Inc. in August 2017. Westwater Resources, Inc. was incorporated in 1977 and is headquartered in Centennial, Colorado.

About Lithium Americas (Argentina)

Lithium Americas (Argentina) Corp. operates as a resource company. The company explores for lithium deposits. The company owns interests in the Cauchari-Olaroz project located in Jujuy province of Argentina. It also has a pipeline of development and exploration stage projects, including the Pastos Grandes project and the Sal de la Puna project located in Salta Province in northwestern Argentina. Lithium Americas (Argentina) Corp. is headquartered in Vancouver, Canada.