Largo (LGO) versus Its Peers Financial Analysis

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

Risk and Volatility

Largo has a beta of 1.5, meaning that its stock price is 50% more volatile than the S&P 500. Comparatively, Largo’s peers have a beta of 0.98, meaning that their average stock price is 2% less volatile than the S&P 500.

Earnings & Valuation

This table compares Largo and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Largo	$127.06 million	-$30.34 million	-0.31
Largo Competitors	$4.65 billion	$278.94 million	-45.13

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

Profitability

This table compares Largo and its peers’ 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%	-53.13%	-2.10%

Insider & Institutional Ownership

64.1% of Largo shares are owned by institutional investors. Comparatively, 15.8% of shares of all “Metals & Mining” companies are owned by institutional investors. 0.3% of Largo shares are owned by company insiders. Comparatively, 17.6% of shares of all “Metals & Mining” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Largo and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Largo	0	0	2	0	3.00
Largo Competitors	6403	22584	32288	1796	2.47

Largo currently has a consensus target price of $1.60, indicating a potential upside of 376.19%. As a group, “Metals & Mining” companies have a potential upside of 31.65%. Given Largo’s stronger consensus rating and higher possible upside, research analysts plainly believe Largo is more favorable than its peers.

Summary

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

Largo Company Profile

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.