Financial Comparison: MP Materials (NYSE:MP) and Searchlight Minerals (OTCMKTS:SRCH)

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

Profitability

This table compares MP Materials and Searchlight Minerals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MP Materials 40.68% 15.65% 7.99%
Searchlight Minerals N/A N/A N/A

Risk and Volatility

MP Materials has a beta of 3.38, suggesting that its share price is 238% more volatile than the S&P 500. Comparatively, Searchlight Minerals has a beta of 1.37, suggesting that its share price is 37% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for MP Materials and Searchlight Minerals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MP Materials 0 0 7 0 3.00
Searchlight Minerals 0 0 0 0 N/A

MP Materials currently has a consensus price target of $46.57, indicating a potential upside of 23.56%. Given MP Materials’ higher possible upside, equities analysts plainly believe MP Materials is more favorable than Searchlight Minerals.

Institutional and Insider Ownership

74.2% 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 hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares MP Materials and Searchlight Minerals’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MP Materials $331.95 million 20.16 $135.04 million $0.73 51.63
Searchlight Minerals N/A N/A N/A N/A N/A

MP Materials has higher revenue and earnings than Searchlight Minerals.

Summary

MP Materials beats Searchlight Minerals on 9 of the 9 factors compared between the two stocks.

About MP Materials (Get Rating)

MP Materials Corp. owns and operates rare earth mining and processing facilities. It owns and operates the Mountain Pass Rare Earth mine 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 cerium, lanthanum, neodymium, praseodymium, and samarium. The company was founded in 2017 and is headquartered in Las Vegas, Nevada.

About Searchlight Minerals (Get Rating)

Searchlight Minerals Corp., an exploration stage company, engages in a slag reprocessing project; and the acquisition and exploration of mineral properties in the United States. It holds interests in the Clarkdale slag project, located in Clarkdale, Arizona, which is a reclamation project to recover precious and base metals from the reprocessing of slag produced from the smelting of copper ore mined at the United Verde Copper Mine in Jerome, Arizona. The company was formerly known as Phage Genomics, Inc and changed its name to Searchlight Minerals Corp. in June 2005. Searchlight Minerals Corp. was founded in 1999 and is based in Henderson, Nevada.

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