Financial Analysis: Foremost Lithium Resource & Technology (NASDAQ:FMST) & IperionX (NASDAQ:IPX)

Foremost Lithium Resource & Technology (NASDAQ:FMST) and IperionX (NASDAQ:IPX) are both small-cap basic materials companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Earnings & Valuation

This table compares Foremost Lithium Resource & Technology and IperionX”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Foremost Lithium Resource & Technology	N/A	N/A	-$3.32 million	($0.73)	-3.15
IperionX	N/A	N/A	-$21.84 million	N/A	N/A

Profitability

This table compares Foremost Lithium Resource & Technology and IperionX’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Foremost Lithium Resource & Technology	N/A	-35.40%	-29.50%
IperionX	N/A	N/A	N/A

Volatility and Risk

Foremost Lithium Resource & Technology has a beta of 3.07, suggesting that its share price is 207% more volatile than the S&P 500. Comparatively, IperionX has a beta of 0.45, suggesting that its share price is 55% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Foremost Lithium Resource & Technology and IperionX, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Foremost Lithium Resource & Technology	0	0	0	0	N/A
IperionX	0	0	1	1	3.50

IperionX has a consensus target price of $25.00, suggesting a potential upside of 11.76%. Given IperionX’s higher probable upside, analysts clearly believe IperionX is more favorable than Foremost Lithium Resource & Technology.

Institutional and Insider Ownership

0.1% of Foremost Lithium Resource & Technology shares are owned by institutional investors. Comparatively, 2.8% of IperionX shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

IperionX beats Foremost Lithium Resource & Technology on 6 of the 8 factors compared between the two stocks.

About Foremost Lithium Resource & Technology

Foremost Lithium Resource & Technology Ltd., an exploration stage company, engages in the hard-rock exploration and acquisition of lithium properties in Canada. Its lithium properties cover approximately 43,000 acres in Snow Lake, Manitoba, and hosts a Lac Simard South property in a lithium camp situated on approximately 11,400 acres in Quebec. The company's flagship lithium lane projects, as well as its Lac Simard South project are located at the tip of the NAFTA superhighway. It also has Winston gold/silver property in New Mexico, the United States. The company was formerly known as Far Resources Ltd. and changed its name to Foremost Lithium Resource & Technology Ltd. in January 2022. Foremost Lithium Resource & Technology Ltd. was incorporated in 2005 and is headquartered in Vancouver, Canada.

About IperionX

IperionX’s mission is to be the leading developer of low carbon, sustainable, critical material supply chains focused on advanced industries including space, aerospace, electric vehicles and 3D printing. IperionX’s breakthrough titanium technologies have demonstrated the potential to produce titanium products that are sustainable, 100% recyclable, have low carbon intensity and to do so at product qualities that meet or exceed current industry standards. The Company also holds a 100% interest in the Titan Project, covering approximately 11,100 acres of titanium, rare earth minerals, high grade silica sand and zircon rich mineral sands properties in Tennessee.