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Critical Analysis: Sisecam Resources (NYSE:SIRE) Versus Piedmont Lithium (NASDAQ:PLL)

Defense World ·  Dec 24, 2022 01:31

Sisecam Resources (NYSE:SIRE – Get Rating) and Piedmont Lithium (NASDAQ:PLL – Get Rating) are both small-cap oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, institutional ownership, risk and earnings.

Insider & Institutional Ownership

5.7% of Sisecam Resources shares are held by institutional investors. Comparatively, 48.2% of Piedmont Lithium shares are held by institutional investors. 1.8% of Piedmont Lithium shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

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Profitability

This table compares Sisecam Resources and Piedmont Lithium's net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sisecam Resources 8.33% 16.33% 9.94%
Piedmont Lithium N/A -10.23% -9.89%

Risk and Volatility

Sisecam Resources has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500. Comparatively, Piedmont Lithium has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Sisecam Resources and Piedmont Lithium, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sisecam Resources 0 0 0 0 N/A
Piedmont Lithium 0 0 5 0 3.00

Piedmont Lithium has a consensus target price of $95.00, indicating a potential upside of 111.77%. Given Piedmont Lithium's higher probable upside, analysts clearly believe Piedmont Lithium is more favorable than Sisecam Resources.

Earnings and Valuation

This table compares Sisecam Resources and Piedmont Lithium's revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sisecam Resources $540.10 million 0.78 $24.40 million $2.86 7.48
Piedmont Lithium N/A N/A N/A ($0.96) -46.73

Sisecam Resources has higher revenue and earnings than Piedmont Lithium. Piedmont Lithium is trading at a lower price-to-earnings ratio than Sisecam Resources, indicating that it is currently the more affordable of the two stocks.

Summary

Sisecam Resources beats Piedmont Lithium on 6 of the 11 factors compared between the two stocks.

About Sisecam Resources

(Get Rating)

Sisecam Resources LP, together with its subsidiaries, engages in the trona ore mining and soda ash production businesses in the United States and internationally. It processes trona ore into soda ash, which is a raw material in flat glass, container glass, detergents, chemicals, paper, and other consumer and industrial products. The company holds approximately 23,500 acres of leased and licensed subsurface mining areas in the Green River Basin of Wyoming. As of December 31, 2021, it had proven and probable reserves of approximately 220.0 million short tons of trona. The company was formerly known as Ciner Resources LP and changed its name to Sisecam Resources LP in February 2022. Sisecam Resources LP was incorporated in 2013 and is headquartered in Atlanta, Georgia. Sisecam Resources LP operates as a subsidiary of Ciner Wyoming Holding Co.

About Piedmont Lithium

(Get Rating)

Piedmont Lithium Inc., an exploration stage company, engages in the exploration and development of resource projects in the United States. The company primarily holds a 100% interest in the Carolina Lithium Project that include an area of approximately 3,116 acres located within the Carolina Tin-Spodumene Belt situated to the west of Charlotte, North Carolina in the United States. It also owns a 61-acre property in Kings Mountain, North Carolina. Piedmont Lithium Inc. is headquartered in Belmont, North Carolina.

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Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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