Comparing Avalon Rare Metals (OTCMKTS:AVLNF) and USA Rare Earth (NASDAQ:USAR)

Avalon Rare Metals (OTCMKTS:AVLNF) and USA Rare Earth (NASDAQ:USAR) are both small-cap basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.

Analyst Ratings

This is a breakdown of current recommendations for Avalon Rare Metals and USA Rare Earth, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Avalon Rare Metals	0	0	0	0	0.00
USA Rare Earth	0	0	3	0	3.00

USA Rare Earth has a consensus target price of $16.00, indicating a potential upside of 3.09%. Given USA Rare Earth’s stronger consensus rating and higher probable upside, analysts clearly believe USA Rare Earth is more favorable than Avalon Rare Metals.

Risk & Volatility

Avalon Rare Metals has a beta of 0.18, indicating that its stock price is 82% less volatile than the S&P 500. Comparatively, USA Rare Earth has a beta of 0.69, indicating that its stock price is 31% less volatile than the S&P 500.

Profitability

This table compares Avalon Rare Metals and USA Rare Earth’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Avalon Rare Metals	-12,472.97%	-5.08%	-4.70%
USA Rare Earth	N/A	-16.58%	-0.67%

Earnings & Valuation

This table compares Avalon Rare Metals and USA Rare Earth”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Avalon Rare Metals	$80,000.00	223.15	-$470,000.00	N/A	N/A
USA Rare Earth	N/A	N/A	$7.90 million	N/A	N/A

USA Rare Earth has lower revenue, but higher earnings than Avalon Rare Metals.

Summary

USA Rare Earth beats Avalon Rare Metals on 7 of the 9 factors compared between the two stocks.

About Avalon Rare Metals

Avalon Advanced Materials Inc., together with its subsidiaries, engages in the acquisition, exploration, evaluation, and development of rare metal and mineral properties primarily in Canada. The company focuses on exploring lithium, tantalum, cesium, indium, gallium, germanium, tin, yttrium, and zirconium deposits, as well as rare earth elements. Its flagship project is the 100% owned Separation Rapids Lithium Project consisting of nineteen mineral claims and one mining lease covering an area of approximately 4,414 hectares located in the Paterson Lake Area, Kenora Mining Division, Ontario. The company was formerly known as Avalon Rare Metals Inc. and changed its name to Avalon Advanced Materials Inc. in February 2016. Avalon Advanced Materials Inc. is headquartered in Toronto, Canada.

About USA Rare Earth

USA Rare Earth, Inc. is domestic supplier of rare earth magnets and heavy rare earth elements. It is developing a vertically integrated, domestic supply chain for rare earth element magnet production, with a facility in Stillwater, Oklahoma, and mining rights to the Round Top heavy rare earth and critical minerals deposit in West Texas. The company was founded in May 2019 and is headquartered in Stillwater, OK.