Anglo American (OTCMKTS:NGLOY) vs. MP Materials (NYSE:MP) Head-To-Head Review

Anglo American (OTCMKTS:NGLOYGet Rating) and MP Materials (NYSE:MPGet Rating) are both basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, valuation, earnings, dividends and profitability.

Analyst Ratings

This is a summary of recent ratings for Anglo American and MP Materials, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Anglo American 1 3 7 0 2.55
MP Materials 0 0 7 0 3.00

Anglo American presently has a consensus price target of $20.09, suggesting a potential downside of 26.41%. MP Materials has a consensus price target of $46.83, suggesting a potential downside of 10.76%. Given MP Materials’ stronger consensus rating and higher probable upside, analysts plainly believe MP Materials is more favorable than Anglo American.

Insider & Institutional Ownership

0.1% of Anglo American shares are held by institutional investors. Comparatively, 68.4% of MP Materials shares are held by institutional investors. 49.7% of MP Materials shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

Anglo American has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500. Comparatively, MP Materials has a beta of 3.14, meaning that its share price is 214% more volatile than the S&P 500.

Earnings & Valuation

This table compares Anglo American and MP Materials’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Anglo American $41.55 billion 1.64 $8.56 billion N/A N/A
MP Materials $331.95 million 28.07 $135.04 million $0.73 71.89

Anglo American has higher revenue and earnings than MP Materials.

Profitability

This table compares Anglo American and MP Materials’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Anglo American N/A N/A N/A
MP Materials 40.68% 15.65% 7.99%

Summary

MP Materials beats Anglo American on 9 of the 11 factors compared between the two stocks.

About Anglo American (Get Rating)

Anglo American plc operates as a mining company worldwide. The company explores for rough and polished diamonds, copper, platinum group metals, metallurgical and thermal coal, and iron ore; and nickel, polyhalite, and manganese ores, as well as alloys. Anglo American plc was founded in 1917 and is headquartered in London, the United Kingdom.

About MP Materials (Get Rating)

MP Materials Corp. engages in the ownership and operation of integrated rare earth mining and processing facilities. It owns and operates the Mountain Pass facility located in the Western Hemisphere. The company holds the mineral rights to the Mountain Pass mine and surrounding areas, as well as intellectual property rights related to the processing and development of rare earth minerals. It offers neodymium and praseodymium that are rare earth elements, which in combination form neodymium-praseodymium. The company was incorporated in 2017 and is headquartered in Las Vegas, Nevada.

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