Fortuna Mining (NYSE:FSM) vs. Avalon Rare Metals (OTCMKTS:AVLNF) Head to Head Analysis

Avalon Rare Metals (OTCMKTS:AVLNF) and Fortuna Mining (NYSE:FSM) are both basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, risk and valuation.

Volatility and Risk

Avalon Rare Metals has a beta of -0.05, indicating that its share price is 105% less volatile than the S&P 500. Comparatively, Fortuna Mining has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500.

Earnings and Valuation

This table compares Avalon Rare Metals and Fortuna Mining”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Avalon Rare Metals	$40,000.00	792.91	-$3.72 million	N/A	N/A
Fortuna Mining	$1.06 billion	2.76	$128.74 million	$0.72	13.24

Fortuna Mining has higher revenue and earnings than Avalon Rare Metals.

Profitability

This table compares Avalon Rare Metals and Fortuna Mining’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Avalon Rare Metals	-10,634.21%	-4.50%	-4.14%
Fortuna Mining	21.48%	12.42%	8.88%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Avalon Rare Metals and Fortuna Mining, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Avalon Rare Metals	0	0	0	0	0.00
Fortuna Mining	1	2	4	0	2.43

Fortuna Mining has a consensus target price of $9.50, suggesting a potential downside of 0.37%. Given Fortuna Mining’s stronger consensus rating and higher possible upside, analysts clearly believe Fortuna Mining is more favorable than Avalon Rare Metals.

Institutional & Insider Ownership

33.8% of Fortuna Mining shares are held by institutional investors. 2.4% of Avalon Rare Metals shares are held by insiders. Comparatively, 1.0% of Fortuna Mining shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Fortuna Mining beats Avalon Rare Metals on 10 of the 12 factors compared between the two stocks.

About Avalon Rare Metals

Avalon Advanced Materials Inc., together with its subsidiaries, engages in the acquisition, exploration, evaluation, and development of rare metal and mineral properties primarily in Canada. The company focuses on exploring lithium, tantalum, cesium, indium, gallium, germanium, tin, yttrium, and zirconium deposits, as well as rare earth elements. Its flagship project is the 100% owned Separation Rapids Lithium Project consisting of nineteen mineral claims and one mining lease covering an area of approximately 4,414 hectares located in the Paterson Lake Area, Kenora Mining Division, Ontario. The company was formerly known as Avalon Rare Metals Inc. and changed its name to Avalon Advanced Materials Inc. in February 2016. Avalon Advanced Materials Inc. is headquartered in Toronto, Canada.

About Fortuna Mining

Fortuna Mining Corp. engages in the precious and base metal mining in Argentina, Burkina Faso, Mexico, Peru, and Côte d’Ivoire. It operates through Mansfield, Sanu, Sango, Cuzcatlan, Bateas, and Corporate segments. The company primarily explores for silver, lead, zinc, and gold. Its flagship project is the Séguéla gold mine, which consists of approximately 62,000 hectares and is located in the Worodougou Region of the Woroba District, Côte d’Ivoire. The company was formerly known as Fortuna Silver Mines Inc. and changed its name to Fortuna Mining Corp. in June 2024. Fortuna Mining Corp. was incorporated in 1990 and is based in Vancouver, Canada.