PLS vs Liontown: Which ASX lithium share looks better after the latest sell-off?

Following are the two lithium ASX stocks which have impressive core operations and future growth prospects but which one of them is a better buy right now?

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PLS Group Limited (ASX: PLS) is one of the top basic materials ASX stocks, which is currently trading at a market capitalisation of $9.19 billion.

PLS had announced its September quarter FY27 quarterly activities report on 28 October 2026. Production volume grew by 25% quarter on quarter to 267.6kt and sales volume stood at 223.6kt. It has reported a revenue of $563 million with an average estimated realised price of US$1,809 per tonne.

PLS Group has incurred a capital expenditure of $185 million and reported a cash margin from operations of $392 million. Cash balance stood at ~$2.22 billion, and it reported a net cash of $1.28 billion. PLS reported liquidity of $2.72 billion, providing capacity for the P2000 expansion following FID approval.

PLS had also announced on 28 October 2026 that its wholly owned subsidiary, Pilgangoora Operations Pty Ltd, has executed a 20-year power purchase agreement with FMG Clean Energy Pty Ltd for the supply of a committed minimum of 325 GWh per annum of electricity to the Pilgangoora Operation to support Pilgangoora's growing forecast power demand under the P2000 operating model.

PLS has to do a capital investment of approximately $150 million for transmission connection and power infrastructure upgrades during FY27-FY29, and the agreement is also expected to reduce the unit operating costs by approximately $15-$20 per tonne compared to the recently announced 10 year average P2000 operating costs.

PLS Group expects a production volume of 1,030kt-1,100kt, with a unit operating cost of $575-$625 per tonne for FY27. It is expected to incur a capex of $1.13-$1.195 billion for FY27.

Liontown Limited (ASX: LTR) is one of the top basic materials ASX stocks, which is currently trading at a market capitalisation of $2.12 billion.

LTR had announced its September 2026 quarterly activities and cash flow reported on 29 October 2026. Underground mining development profile increased 21% quarter on quarter to 4,021 metres, and underground ore mined increased by 9% quarter on quarter to 389kt.

It has reported spodumene concentrate production of 77,982 dmt at a unit cost of $1,259 per dmt and 82,561 dmt concentrate sold across five parcels at an average grade of 5.2% Li2O, with a realised price of US$1,966 per dmt SC6e CIF.

Liontown has reported a revenue of $199 million for Q1 FY2027. LTR reported an operating cash flow of $46.6 million and has reported a closing cash balance of $502 million.

The company is expected to maintain a concentrate production of 390-440 kdmt (SC5.1 basis) at a unit operating cost of $1,050-$1,250 per dmt sold. LTR is expected to incur a total capital expenditure of $435-$495 million for FY27. It is targeting an underground mining run rate of approximately 1.9 Mtpa in Q2 FY27, increasing to 2.8 Mtpa by FY27-end.

The approved $389 million Kathleen Valley expansion is expected to lift steady-state concentrate production to an average of approximately 780,000 dmt annually from FY30, and first ore from Kathleen’s Corner Underground is expected in Q1 FY28.

Conclusion

PLS Group Limited appears to be a better investment case compared to Liontown Limited, supported by annual revenue growth, earning quality and margin control. It has a return on average common equity of 13.8% and returns on invested capital of 11.8% in June 2026. PLS is currently undervalued compared to LTR, as it has a trailing 12-month EV/EBITDA of 7.43x compared to 11.8x. It reflects that the PLS is generating more return in relatively low valuation, indicating a long-term upside potential.

(Source: Company Announcements)