Largo (LGO) versus Its Peers Critical Comparison

Largo (NYSE:LGO) is one of 1,984 public companies in the “Metals & Mining” industry, but how does it compare to its rivals? We will compare Largo to similar businesses based on the strength of its institutional ownership, earnings, analyst recommendations, valuation, profitability, risk and dividends.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Largo and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Largo	0	0	2	0	3.00
Largo Competitors	6398	22575	32272	1793	2.47

Largo currently has a consensus price target of $2.10, indicating a potential upside of 506.06%. As a group, “Metals & Mining” companies have a potential upside of 34.64%. Given Largo’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Largo is more favorable than its rivals.

Profitability

This table compares Largo and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Largo	-35.10%	-22.61%	-14.29%
Largo Competitors	-1,168,050,136,845,918,000.00%	-53.15%	-2.11%

Risk & Volatility

Largo has a beta of 1.5, suggesting that its share price is 50% more volatile than the S&P 500. Comparatively, Largo’s rivals have a beta of 0.99, suggesting that their average share price is 1% less volatile than the S&P 500.

Earnings & Valuation

This table compares Largo and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Largo	$127.06 million	-$30.34 million	-0.32
Largo Competitors	$4.78 billion	$279.61 million	-46.28

Largo’s rivals have higher revenue and earnings than Largo. Largo is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Insider & Institutional Ownership

64.1% of Largo shares are owned by institutional investors. Comparatively, 15.9% of shares of all “Metals & Mining” companies are owned by institutional investors. 0.3% of Largo shares are owned by company insiders. Comparatively, 17.5% of shares of all “Metals & Mining” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Largo beats its rivals on 8 of the 13 factors compared.

About Largo

Largo Inc. engages in the development and sale of vanadium-based energy storage systems in Canada. The company operates through, Sales & Trading, Mine Properties, Corporate, Exploration and Evaluation Properties, and Largo Clean Energy and Largo Physical Vanadium Segments. Its products include VPURE+ vanadium flakes that are used in the production of master alloys and aerospace applications; VPURE vanadium flakes ferrovanadium and vanadium carbon nitride for the steel industry; and VPURE+ vanadium powder for catalyst applications. The company offers renewable energy storage solutions through Largo Clean Energy. Its products are sourced from vanadium deposits at the Maracás Menchen Mine in Brazil. The company was formerly known as Largo Resources Ltd. and changed its name to Largo Inc. in November 2021. The company was incorporated in 1988 and is headquartered in Toronto, Canada.