Head-To-Head Contrast: Atlas Lithium (NASDAQ:ATLX) & Deep Yellow (OTCMKTS:DYLLF)

Deep Yellow (OTCMKTS:DYLLF) and Atlas Lithium (NASDAQ:ATLX) are both small-cap basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, earnings, profitability, institutional ownership, valuation and analyst recommendations.

Profitability

This table compares Deep Yellow and Atlas Lithium’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Deep Yellow	N/A	N/A	N/A
Atlas Lithium	-9,881.20%	-120.64%	-51.32%

Institutional and Insider Ownership

18.4% of Atlas Lithium shares are held by institutional investors. 33.6% of Atlas Lithium shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Deep Yellow has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500. Comparatively, Atlas Lithium has a beta of -0.76, suggesting that its stock price is 176% less volatile than the S&P 500.

Valuation and Earnings

This table compares Deep Yellow and Atlas Lithium”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Deep Yellow	$7.51 million	213.58	$4.64 million	N/A	N/A
Atlas Lithium	$670,000.00	169.43	-$42.24 million	($1.93)	-2.45

Deep Yellow has higher revenue and earnings than Atlas Lithium.

Analyst Recommendations

This is a summary of current recommendations and price targets for Deep Yellow and Atlas Lithium, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Deep Yellow	0	1	0	0	2.00
Atlas Lithium	1	0	1	0	2.00

Deep Yellow currently has a consensus price target of $1.85, indicating a potential upside of 11.78%. Atlas Lithium has a consensus price target of $12.00, indicating a potential upside of 154.24%. Given Atlas Lithium’s higher probable upside, analysts plainly believe Atlas Lithium is more favorable than Deep Yellow.

Summary

Deep Yellow beats Atlas Lithium on 7 of the 11 factors compared between the two stocks.

About Deep Yellow

Deep Yellow Limited, together with its subsidiaries, operates as a uranium exploration company in Namibia. The company holds a 100% interest in the Reptile project, which covers an area of 896 square kilometers (km2); 65% interest in the Nova Joint Venture covering an area of 599 km2; and 85% interest in the Yellow Dune Joint Venture covering an area of 190 km2. It is involved in the iron ore exploration and property investment businesses. The company was incorporated in 1985 and is headquartered in Subiaco, Australia.

About Atlas Lithium

Atlas Lithium Corporation operates as a mineral exploration and development company in Brazil. It operates the Minas Gerais lithium project that consists of 54 mineral rights covering an area of 59,275 acres located within the Brazilian Eastern Pegmatitic Province; and Northeastern Brazil lithium project, which consists of 7 mineral rights covering an area of 16,266 acres in the States of Paraíba and Rio Grande do Norte in northeastern Brazil. The company also owns 100% interests in various mining concessions for gold, diamond, and industrial sand; and early-stage projects and properties in other minerals, such as nickel, copper, rare earths, graphite, and titanium; as well as participates in iron and quartzite projects. The company was formerly known as Brazil Minerals, Inc. and changed its name to Atlas Lithium Corporation in October 2022. Atlas Lithium Corporation was founded in 2011 and is based in Belo Horizonte, Brazil.