enCore Energy (NASDAQ:EU – Get Free Report) and MP Materials (NYSE:MP – Get Free Report) are both basic materials companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, dividends, valuation, analyst recommendations, earnings, profitability and institutional ownership.
Profitability
This table compares enCore Energy and MP Materials’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| enCore Energy | -118.78% | -19.83% | -15.18% |
| MP Materials | -50.55% | -7.69% | -3.59% |
Analyst Recommendations
This is a summary of recent ratings for enCore Energy and MP Materials, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| enCore Energy | 1 | 1 | 1 | 1 | 2.50 |
| MP Materials | 1 | 0 | 13 | 1 | 2.93 |
Institutional & Insider Ownership
20.9% of enCore Energy shares are owned by institutional investors. Comparatively, 52.6% of MP Materials shares are owned by institutional investors. 3.9% of enCore Energy shares are owned by insiders. Comparatively, 9.5% of MP Materials shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares enCore Energy and MP Materials”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| enCore Energy | $58.33 million | 8.27 | -$61.39 million | ($0.28) | -9.20 |
| MP Materials | $203.85 million | 47.47 | -$65.42 million | ($0.71) | -76.91 |
enCore Energy has higher earnings, but lower revenue than MP Materials. MP Materials is trading at a lower price-to-earnings ratio than enCore Energy, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
enCore Energy has a beta of 2.01, indicating that its stock price is 101% more volatile than the S&P 500. Comparatively, MP Materials has a beta of 1.69, indicating that its stock price is 69% more volatile than the S&P 500.
Summary
MP Materials beats enCore Energy on 9 of the 14 factors compared between the two stocks.
About enCore Energy
enCore Energy Corp. engages in the acquisition, exploration, and development of uranium resource properties in the United States. It holds a 100% interest in Crownpoint and Hosta Butte uranium project area covers 3,020 acres located in the Grants Uranium Belt, New Mexico. The company also holds interest in the Marquez-Juan Tafoya property comprises 14,582 acres located in McKinley and Sandoval counties of New Mexico; and the Nose Rock project comprising 42 owned unpatented lode mining claims comprising approximately 800 acres located in McKinley County, New Mexico. In addition, it holds interest in the White Canyon District and Utah property package, including the Geitus, Blue Jay, Marcy Look, and Cedar Mountain projects located to the northwest of the White Mesa Mill at Blanding County, Utah. Further, the company holds a 100% interest in Dewey Burdock project comprises approximately 12,613 surface acres and 16,962 net mineral acres located in South Dakota; Gas Hills project consists of approximately 1,280 surface acres and 12,960 net mineral acres of unpatented lode mining claims located in Wyoming; and West Largo project consist of approximately 3,840 acres located in McKinley County, New Mexico. Additionally, it holds a 100% interest in Ambrosia Lake – Treeline property consists of deeded mineral rights totaling 24,555 acres and unpatented mining claims covering approximately 1,700 acres; and Checkerboard mineral rights covering a land position of approximately 300,000 acres located in the Grants Uranium District. The company was formerly known as Wolfpack Gold Corp. and changed its name to enCore Energy Corp. in August 2014. enCore Energy Corp. is headquartered in Corpus Christi, Texas.
About MP Materials
MP Materials Corp., together with its subsidiaries, produces rare earth materials. The company owns and operates the Mountain Pass Rare Earth mine and processing facility in North America. It 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. The company was founded in 2017 and is headquartered in Las Vegas, Nevada.
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