Critical Analysis: Silver Bull Resources (OTCMKTS:SVBL) vs. American Lithium (NASDAQ:AMLI)

American Lithium (NASDAQ:AMLI) and Silver Bull Resources (OTCMKTS:SVBL) are both small-cap basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, analyst recommendations, profitability, institutional ownership and valuation.

Institutional and Insider Ownership

7.7% of American Lithium shares are held by institutional investors. Comparatively, 0.2% of Silver Bull Resources shares are held by institutional investors. 16.5% of Silver Bull Resources shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and target prices for American Lithium and Silver Bull Resources, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Lithium	0	0	1	1	3.50
Silver Bull Resources	0	0	0	0	0.00

American Lithium presently has a consensus target price of $3.25, indicating a potential upside of 342.18%. Given American Lithium’s stronger consensus rating and higher possible upside, research analysts clearly believe American Lithium is more favorable than Silver Bull Resources.

Volatility & Risk

American Lithium has a beta of 1.47, meaning that its share price is 47% more volatile than the S&P 500. Comparatively, Silver Bull Resources has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500.

Valuation and Earnings

This table compares American Lithium and Silver Bull Resources”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Lithium	N/A	N/A	-$29.55 million	($0.10)	-7.35
Silver Bull Resources	N/A	N/A	-$1.25 million	N/A	N/A

Profitability

This table compares American Lithium and Silver Bull Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Lithium	N/A	-17.25%	-16.87%
Silver Bull Resources	N/A	-2.58%	-2.31%

Summary

American Lithium beats Silver Bull Resources on 6 of the 10 factors compared between the two stocks.

About American Lithium

American Lithium Corp., an exploration and development stage company, engages in the acquisition, exploration, and development of resource properties in the United States. It principally focuses on the TLC Lithium Project located in the town of Tonopah, Nevada; and the Falchani Lithium project and the Macusani Uranium project located in Puno, Peru. The company was formerly known as Menika Mining Ltd. and changed its name to American Lithium Corp. in April 2016. American Lithium Corp. was incorporated in 1974 and is based in Vancouver, Canada.

About Silver Bull Resources

Silver Bull Resources, Inc., an exploration stage company, acquires, explores, and develops mineral properties in Mexico, Kazakhstan, and Canada. The company primarily explores for silver, lead, copper, and zinc deposits, as well as gold. Its principal project is the Sierra Mojada property comprising 20 concessions covering an area of 6,496 hectares located in Coahuila, Mexico. The company was formerly known as Metalline Mining Company and changed its name to Silver Bull Resources, Inc. in April 2011. Silver Bull Resources, Inc. was incorporated in 1993 and is based in Vancouver, Canada.