Alcoa (NYSE:AA – Get Free Report) and Energizer Resources (OTCMKTS:NSRCF – Get Free Report) are both materials companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.
Risk and Volatility
Alcoa has a beta of 1.63, meaning that its share price is 63% more volatile than the S&P 500. Comparatively, Energizer Resources has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Alcoa and Energizer Resources, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Alcoa | 1 | 5 | 7 | 0 | 2.46 |
| Energizer Resources | 0 | 0 | 0 | 1 | 4.00 |
Profitability
This table compares Alcoa and Energizer Resources’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Alcoa | 9.48% | 18.90% | 7.71% |
| Energizer Resources | -3,149.65% | -89.77% | -34.88% |
Valuation and Earnings
This table compares Alcoa and Energizer Resources”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Alcoa | $12.83 billion | 0.88 | $1.16 billion | $4.86 | 8.79 |
| Energizer Resources | $710,000.00 | 66.35 | -$23.26 million | ($0.19) | -1.01 |
Alcoa has higher revenue and earnings than Energizer Resources. Energizer Resources is trading at a lower price-to-earnings ratio than Alcoa, indicating that it is currently the more affordable of the two stocks.
Summary
Alcoa beats Energizer Resources on 10 of the 13 factors compared between the two stocks.
About Alcoa
Alcoa Corporation, together with its subsidiaries, produces and sells bauxite, alumina, and aluminum products in the United States, Spain, Australia, Iceland, Norway, Brazil, Canada, and internationally. The company operates through two segments, Alumina and Aluminum. It engages in bauxite mining operations; and processes bauxite into alumina and sells it to customers who process it into industrial chemical products, as well as aluminum smelting and casting businesses. The company offers primary aluminum in the form of alloy ingot or value-add ingot to customers that produce products for the transportation, building and construction, packaging, wire, and other industrial markets; and flat-rolled aluminum in the form of sheet, which is sold primarily to customers that produce beverage and food cans. In addition, it owns hydro power plants that generates and sells electricity in the wholesale market to traders, large industrial consumers, distribution companies, and other generation companies. The company was formerly known as Alcoa Upstream Corporation and changed its name to Alcoa Corporation in October 2016. The company was founded in 1886 and is headquartered in Pittsburgh, Pennsylvania.
About Energizer Resources
NextSource Materials Inc. acquires, explores for, and develops mineral properties in Madagascar and Canada. The company primarily explores for graphite and vanadium deposits. Its flagship property is the 100% owned Molo graphite mine project located in the Southern Madagascar Region, Madagascar. The company was formerly known as Energizer Resources Inc. The company was founded in 2004 and is headquartered in Toronto, Canada.
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