Financial Comparison: USA Rare Earth (USAR) and Its Peers

USA Rare Earth (NASDAQ:USAR) is one of 103 public companies in the “MINING – MISC” industry, but how does it compare to its rivals? We will compare USA Rare Earth to similar companies based on the strength of its profitability, institutional ownership, valuation, dividends, risk, earnings and analyst recommendations.

Profitability

This table compares USA Rare Earth and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
USA Rare Earth	N/A	-16.58%	-0.67%
USA Rare Earth Competitors	-1,016.34%	-12.40%	-4.51%

Analyst Recommendations

This is a summary of current ratings and price targets for USA Rare Earth and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
USA Rare Earth	1	0	4	0	2.60
USA Rare Earth Competitors	731	1822	3497	170	2.50

USA Rare Earth currently has a consensus price target of $26.00, suggesting a potential upside of 33.68%. As a group, “MINING – MISC” companies have a potential upside of 9.52%. Given USA Rare Earth’s stronger consensus rating and higher probable upside, analysts clearly believe USA Rare Earth is more favorable than its rivals.

Risk & Volatility

USA Rare Earth has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500. Comparatively, USA Rare Earth’s rivals have a beta of 0.61, meaning that their average stock price is 39% less volatile than the S&P 500.

Insider and Institutional Ownership

35.5% of shares of all “MINING – MISC” companies are held by institutional investors. 46.6% of USA Rare Earth shares are held by insiders. Comparatively, 9.4% of shares of all “MINING – MISC” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares USA Rare Earth and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
USA Rare Earth	N/A	$7.90 million	-72.04
USA Rare Earth Competitors	$9.79 billion	$431.05 million	-18.54

USA Rare Earth’s rivals have higher revenue and earnings than USA Rare Earth. USA Rare Earth is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

USA Rare Earth beats its rivals on 7 of the 13 factors compared.

USA Rare Earth Company Profile

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.