The Pilbara Minerals Ltd (ASX: PLS) share worth has risen strongly over the previous couple of months. However, Allkem Ltd (ASX: AKE) shares have additionally elevated considerably lately as nicely.

Since 22 June 2022, Pilbara Minerals shares are up by 72%, with Allkem rising 39% over the identical time interval.

They’re each main ASX lithium gamers. However there are pretty large variations between them.

Allkem is headquartered in Buenos Aires, Argentina. It has lithium brine operations in Argentina, a hard-rock lithium operation in Australia, and a lithium hydroxide conversion facility in Japan. It additionally has new undertaking developments underway “throughout the globe” to reinforce its worldwide scale.

Pilbara Minerals says that it owns 100% of one of many world’s largest impartial hard-rock lithium operations. It’s positioned in WA, referred to as the Pilgangoora undertaking. The corporate is pursuing a development and diversification technique to change into a low-cost lithium producer and totally built-in lithium uncooked materials and chemical provider.

Which one is best worth?

I suppose worth is within the eye of the beholder.

One of many methods to check companies is by wanting on the worth/earnings (p/e) ratio. This tells us the a number of of earnings that every enterprise is buying and selling at.

Utilizing estimates on CMC markets, the Pilbara Minerals share worth is valued at six occasions FY23’s estimated earnings and underneath 9 occasions FY24’s estimated earnings.

Nonetheless, wanting on the Allkem share worth, it’s valued at 10 occasions FY23’s estimated earnings and round 9 occasions FY24’s estimated earnings.

On an earnings projection, Pilbara Minerals does seem like cheaper.

What do brokers consider these two ASX lithium shares?

Brokers are pondering that ASX lithium shares sometimes have enticing outlooks due to the anticipated rising demand for electrical automobiles.

Nonetheless, some brokers are extra optimistic about some ASX lithium shares than others.

Opinions are very blended. Macquarie has an ‘outperform’ ranking on Pilbara Minerals, with a worth goal of $5.60. That means an increase of greater than 50% over the following yr. Macquarie can also be bullish concerning the subsequent few years on account of expectations of robust lithium costs.

Nonetheless, Credit score Suisse at the moment has a ranking of ‘underperform’ on the enterprise, with a worth ranking of $2.30. That might be a fall of the Pilbara Minerals share worth of greater than 30%. Greater prices in FY23 is  one of many predominant components that the dealer is cautious about.

Utilizing those self same brokers for Allkem, it’s an identical story.

Macquarie charges Allkem as ‘outperform’ with a worth goal of $21. That might be an increase of round 50%. Whereas the corporate is benefiting from excessive costs, manufacturing steering for FY23 was decreased.

Credit score charges Allkem as ‘underperform’, with a worth goal of simply $10.30. That might be a drop of round 25%. The dealer famous the decreased manufacturing steering and better anticipated prices.