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LGO vs NEM

LGO
Largo Inc.
BEARISH
Price
$1.19
Market Cap
$115.8M
Sector
Basic Materials
AI Confidence
95%
NEM
Newmont Corporation
NEUTRAL
Price
$111.85
Market Cap
$121.68B
Sector
Basic Materials
AI Confidence
85%

Valuation

P/E Ratio
LGO
--
NEM
17.5
Forward P/E
LGO
13.22
NEM
10.48
P/B Ratio
LGO
0.59
NEM
3.59
P/S Ratio
LGO
1.05
NEM
5.37
EV/EBITDA
LGO
-7.93
NEM
8.62

Profitability

Gross Margin
LGO
-20.71%
NEM
63.24%
Operating Margin
LGO
-147.85%
NEM
58.11%
Profit Margin
LGO
-62.34%
NEM
31.25%
ROE
LGO
-44.67%
NEM
22.34%
ROA
LGO
-9.14%
NEM
12.13%

Growth

Revenue Growth
LGO
-8.2%
NEM
20.6%
Earnings Growth
LGO
--
NEM
-4.6%

Financial Health

Debt/Equity
LGO
0.78
NEM
0.17
Current Ratio
LGO
0.51
NEM
2.29
Quick Ratio
LGO
0.14
NEM
1.75

Dividends

Dividend Yield
LGO
--
NEM
0.93%
Payout Ratio
LGO
0.0%
NEM
15.65%

AI Verdict

LGO BEARISH

LGO exhibits critical financial fragility, highlighted by a Piotroski F-Score of 1/9, indicating severe operational and financial deterioration. The company is facing a liquidity crisis with a Quick Ratio of 0.14 and a Current Ratio of 0.51, suggesting an inability to meet short-term obligations. While the stock trades at a discount to book value (P/B 0.59), this is likely a 'value trap' given the negative gross margins (-20.71%) and consistent revenue decline. The long-term price trajectory is catastrophic, with a 92.5% loss over five years.

Strengths
Trading significantly below book value (P/B 0.59)
Forward P/E of 13.22 suggests a projected return to profitability
Debt/Equity ratio (0.78) is relatively moderate for the mining sector
Risks
Severe liquidity risk with a Quick Ratio of 0.14
Negative Gross Margin indicates the core product is being sold at a loss
Piotroski F-Score of 1/9 signals extreme financial distress
NEM NEUTRAL

Newmont Corporation presents a dichotomy between strong operational fundamentals and significant valuation premiums. While the Piotroski F-Score of 4/9 indicates stable health and the balance sheet is pristine with a Debt/Equity ratio of 0.17, the stock trades at a substantial premium to its Graham Number ($66.88) and Intrinsic Value ($44.73). Recent quarterly earnings beats are impressive, yet bearish insider sentiment and a 0/100 technical trend suggest a lack of immediate conviction from internal stakeholders and market momentum. The overall outlook is neutral as strong profitability is offset by overvaluation and negative insider signals.

Strengths
Exceptional balance sheet with very low Debt/Equity (0.17)
Strong profitability metrics including an Operating Margin of 58.11% and ROE of 22.34%
Consistent recent earnings surprises, beating estimates in 3 of the last 4 quarters
Risks
Significant overvaluation relative to Graham Number ($66.88) and Intrinsic Value ($44.73)
Bearish insider activity with 9 sell transactions and 0 buys in the last 6 months
Technical trend is currently 0/100 (Bearish)

Compare Another Pair

LGO vs NEM: Head-to-Head Comparison

This page compares Largo Inc. (LGO) and Newmont Corporation (NEM) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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