Two S&P/ASX 200 Index (ASX: XJO) lithium shares have been the talk of the town in 2022. They are, of course, Core Lithium Ltd (ASX: CXO) and Pilbara Minerals Ltd (ASX: PLS).
The pair came in as the first and second most traded ASX shares of 2022, according to data from trading and superannuation platform Superhero.
They've also each outperformed the ASX 200 this year. Pilbara Minerals shares' 10% gain has been dwarfed by the 64% surge posted by Core Lithium stock, shown in the chart below.
But which of the pair is the better buy right now? Let's take a look.
Image source: Getty Images
Compare the pair
First off, it's important to note that comparing the two companies is made difficult by their vast differences. Indeed, the fact they are both ASX 200 lithium shares is just about their only similarity.
Pilbara Minerals posted its maiden profit in August and is expected to kick off dividends this fiscal year. Meanwhile, Core Lithium is yet to begin production at its flagship Finniss Project.
Thus, a dividend-focused investor might find the former lithium stock more appealing, while a growth-focused investor might be initially drawn to the latter.
Though, many brokers have indicated a preference.
Top brokers prefer Pilbara Minerals shares over Core Lithium
Morgans, for instance, tips Pilbara Minerals shares as one to buy. It believes the stock could rise 22% to $4.70. The ASX 200 lithium giant is currently trading at $3.86, as the below chart shows.
Goldman Sachs agrees. It recently upped its price target for Pilbara Minerals shares to $4.70. Though, it still has a neutral rating on the stock.
But Goldman Sachs is far less bullish on Core Lithium shares, slapping them with a $1 price target – a potential 3% drop on their current price of $1.03 – and a sell rating. The broker believes the company's stock has run ahead of fundamentals.
Meanwhile, Barrenjoey is said to expect Core Lithium shares to fall to 85 cents, as my Fool colleague Monica reports. The same broker has tipped Pilbara Minerals to rise to $4, as per The Australian.
But not all are so bearish on Core Lithium shares.
Macquarie thinks the company could be cash flow positive by financial year 2024. It has tipped the share to grow 26% to $1.30 and hit it with an outperform rating.
The broker was also recently bullish on Pilbara Minerals. It had an outperform rating on the stock, tipping it to rise to $7.70, my colleague James reported last month.
