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Analyzing Snow Lake Resources (NASDAQ:LITM) and Nouveau Monde Graphite (NYSE:NMG)

Defense World ·  Jan 7, 2023 01:21

Nouveau Monde Graphite (NYSE:NMG – Get Rating) and Snow Lake Resources (NASDAQ:LITM – Get Rating) are both small-cap basic materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, dividends, profitability, analyst recommendations, institutional ownership, risk and valuation.

Analyst Recommendations

This is a summary of recent ratings and target prices for Nouveau Monde Graphite and Snow Lake Resources, as reported by MarketBeat.com.

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Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nouveau Monde Graphite 0 0 1 0 3.00
Snow Lake Resources 0 0 0 0 N/A

Nouveau Monde Graphite currently has a consensus target price of $7.00, suggesting a potential upside of 49.57%. Given Nouveau Monde Graphite's higher possible upside, analysts plainly believe Nouveau Monde Graphite is more favorable than Snow Lake Resources.

Insider & Institutional Ownership

8.0% of Nouveau Monde Graphite shares are owned by institutional investors. Comparatively, 8.2% of Snow Lake Resources shares are owned by institutional investors. 22.7% of Nouveau Monde Graphite shares are owned by company insiders. Comparatively, 13.4% of Snow Lake Resources shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Nouveau Monde Graphite and Snow Lake Resources' revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nouveau Monde Graphite N/A N/A -$31.83 million ($0.81) -5.78
Snow Lake Resources N/A N/A -$7.46 million N/A N/A

Volatility and Risk

Nouveau Monde Graphite has a beta of 0.59, suggesting that its share price is 41% less volatile than the S&P 500. Comparatively, Snow Lake Resources has a beta of 3.17, suggesting that its share price is 217% more volatile than the S&P 500.

Profitability

This table compares Nouveau Monde Graphite and Snow Lake Resources' net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nouveau Monde Graphite N/A -59.47% -48.38%
Snow Lake Resources N/A N/A N/A

Summary

Snow Lake Resources beats Nouveau Monde Graphite on 5 of the 8 factors compared between the two stocks.

About Nouveau Monde Graphite

(Get Rating)

Nouveau Monde Graphite Inc. engages in the acquisition, exploration, development, and evaluation of mineral properties in Canada. It primarily explores for graphite. The company's flagship project is the Matawinie property that includes 392 mining claims covering an area of 21,750 hectares situated to the north of Montreal, Quebec. It also engages in the real estate and trading businesses. The company was formerly known as Nouveau Monde Mining Enterprises Inc. and changed its name to Nouveau Monde Graphite Inc. in February 2017. Nouveau Monde Graphite Inc. was founded in 2011 and is headquartered in Saint-Michel-des-Saints, Canada.

About Snow Lake Resources

(Get Rating)

Snow Lake Resources Ltd., a natural resource exploration company, engages in the exploration and development of mineral resources in Canada. The company explores for lithium mineral resources. It holds interest in the Thompson Brothers Lithium property covering an area of 55,318 acres; and a 100% interest in Snow Lake Lithium property comprising 122 mineral claims covering an area of 22,386.30 hectares located in north central Manitoba. The company was incorporated in 2018 and is based in Winnipeg, Canada.

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