Cleveland-Cliffs (NYSE:CLF – Get Rating) and American Lithium (NASDAQ:AMLI – Get Rating) are both basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, institutional ownership, valuation and dividends.
Insider & Institutional Ownership
65.3% of Cleveland-Cliffs shares are held by institutional investors. Comparatively, 0.0% of American Lithium shares are held by institutional investors. 1.4% of Cleveland-Cliffs shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Cleveland-Cliffs and American Lithium’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cleveland-Cliffs | $22.99 billion | 0.40 | $1.34 billion | $2.51 | 7.14 |
| American Lithium | N/A | N/A | -$18.80 million | ($0.11) | -18.64 |
Profitability
This table compares Cleveland-Cliffs and American Lithium’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cleveland-Cliffs | 5.81% | 22.07% | 8.15% |
| American Lithium | N/A | -17.21% | -16.92% |
Analyst Ratings
This is a breakdown of recent ratings for Cleveland-Cliffs and American Lithium, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cleveland-Cliffs | 1 | 5 | 6 | 0 | 2.42 |
| American Lithium | 0 | 0 | 2 | 0 | 3.00 |
Cleveland-Cliffs presently has a consensus price target of $22.11, suggesting a potential upside of 23.30%. American Lithium has a consensus price target of $5.00, suggesting a potential upside of 143.90%. Given American Lithium’s stronger consensus rating and higher possible upside, analysts clearly believe American Lithium is more favorable than Cleveland-Cliffs.
Risk and Volatility
Cleveland-Cliffs has a beta of 2.22, meaning that its stock price is 122% more volatile than the S&P 500. Comparatively, American Lithium has a beta of 1.92, meaning that its stock price is 92% more volatile than the S&P 500.
Summary
Cleveland-Cliffs beats American Lithium on 11 of the 13 factors compared between the two stocks.
About Cleveland-Cliffs
Cleveland-Cliffs is the largest flat-rolled steel company and the largest iron ore pellet producer in North America. The company is vertically integrated from mining through iron making, steelmaking, rolling, finishing and downstream with hot and cold stamping of steel parts and components. The company was formerly known as Cliffs Natural Resources Inc. and changed its name to Cleveland-Cliffs Inc. in August 2017. Cleveland-Cliffs Inc. was founded in 1847 and is headquartered in Cleveland, Ohio.
About American Lithium
American Lithium Corp. is an exploration stage company. It engages in the acquisition, exploration, and development of lithium deposits. The firm is focused on exploring and developing the TLC Lithium, Falchani Lithium, and Macusani Uranium projects. The company was founded on February 25, 1974 and is headquartered in Vancouver, Canada.
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