Li-Cycle (NYSE:LICY) vs. Diversified Royalty (OTCMKTS:BEVFF) Financial Analysis

Li-Cycle (NYSE:LICY) and Diversified Royalty (OTCMKTS:BEVFF) are both small-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, profitability, earnings, dividends, valuation, risk and analyst recommendations.

Earnings & Valuation

This table compares Li-Cycle and Diversified Royalty’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Li-Cycle N/A N/A N/A N/A N/A
Diversified Royalty $22.77 million 12.02 -$6.63 million N/A N/A

Li-Cycle has higher earnings, but lower revenue than Diversified Royalty.

Profitability

This table compares Li-Cycle and Diversified Royalty’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Li-Cycle N/A -291.66% -62.65%
Diversified Royalty 28.45% 10.07% 5.27%

Insider and Institutional Ownership

39.3% of Li-Cycle shares are held by institutional investors. 12.0% of Diversified Royalty shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and price targets for Li-Cycle and Diversified Royalty, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Li-Cycle 0 1 5 0 2.83
Diversified Royalty 0 0 2 0 3.00

Li-Cycle presently has a consensus target price of $13.83, suggesting a potential upside of 35.62%. Diversified Royalty has a consensus target price of $2.93, suggesting a potential upside of 30.58%. Given Li-Cycle’s higher possible upside, equities research analysts clearly believe Li-Cycle is more favorable than Diversified Royalty.

Summary

Diversified Royalty beats Li-Cycle on 6 of the 9 factors compared between the two stocks.

About Li-Cycle

Peridot Acquisition Corp. is a blank check company. It formed for the purpose of merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. Peridot Acquisition Corp. is based in Houston, Texas.

About Diversified Royalty

Diversified Royalty Corp. engages in the acquisition of well-managed royalties from multi-location businesses and franchisors. It also owns the following trademarks: Mr. Lube, AIR MILES, Sutton, Mr. Mikes, Nurse Next Door, and Oxford Learning Centres. The company was founded on July 29, 1992 and is headquartered in Vancouver, Canada.

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