Rare Element Resources (OTCMKTS:REEMF – Get Rating) and Alexco Resource (NYSE:AXU – Get Rating) 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 profitability, risk, institutional ownership, earnings, dividends, analyst recommendations and valuation.
Profitability
This table compares Rare Element Resources and Alexco Resource's net margins, return on equity and return on assets.
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| Net Margins | Return on Equity | Return on Assets |
Rare Element Resources | N/A | -47.89% | -42.44% |
Alexco Resource | -667.20% | -12.80% | -10.90% |
Analyst Ratings
This is a summary of current recommendations and price targets for Rare Element Resources and Alexco Resource, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
Rare Element Resources | 0 | 0 | 0 | 0 | N/A |
Alexco Resource | 0 | 2 | 0 | 0 | 2.00 |
Alexco Resource has a consensus target price of $3.25, suggesting a potential upside of 655.81%. Given Alexco Resource's higher possible upside, analysts clearly believe Alexco Resource is more favorable than Rare Element Resources.
Earnings and Valuation
This table compares Rare Element Resources and Alexco Resource's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
Rare Element Resources | N/A | N/A | -$5.40 million | ($0.03) | -18.33 |
Alexco Resource | $17.16 million | 4.30 | -$2.51 million | ($0.55) | -0.78 |
Alexco Resource has higher revenue and earnings than Rare Element Resources. Rare Element Resources is trading at a lower price-to-earnings ratio than Alexco Resource, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
0.0% of Rare Element Resources shares are owned by institutional investors. Comparatively, 27.3% of Alexco Resource shares are owned by institutional investors. 2.7% of Rare Element Resources shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Risk and Volatility
Rare Element Resources has a beta of -0.15, meaning that its share price is 115% less volatile than the S&P 500. Comparatively, Alexco Resource has a beta of 1.58, meaning that its share price is 58% more volatile than the S&P 500.
Summary
Alexco Resource beats Rare Element Resources on 7 of the 10 factors compared between the two stocks.
About Rare Element Resources
(Get Rating)
Rare Element Resources Ltd. engages in the exploration of mineral properties in the United States. It holds a 100% interest in the Bear Lodge property that comprises the Bear Lodge REE project and the Sundance Gold project located in central Crook County, northeast Wyoming. The company is headquartered in Littleton, Colorado.
About Alexco Resource
(Get Rating)
Alexco Resource Corp. engages in the mineral exploration, evaluation, development, and operational activities primarily in Yukon Territory, Canada. The company explores for silver, lead, zinc, and gold deposits. It owns interests in the majority of the historic Keno Hill Silver District project that comprises the Flame & Moth, Bermingham, Lucky Queen, Bellekeno, and Onek deposits, as well as 722 quartz mining leases, 873 quartz claims, 24 placer mining claims, 1 quartz mining license and 50% of 3 quartz mining leases, 2 crown grants, and 6 fee simple lots and 7 surface leases located in Yukon Territory. Alexco Resource Corp. was incorporated in 2004 and is headquartered in Vancouver, Canada.
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