MP Materials (NYSE:MP – Get Free Report) and Atlas Lithium (NASDAQ:ATLX – Get Free Report) are both basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, risk, dividends, earnings and valuation.
Insider & Institutional Ownership
52.5% of MP Materials shares are held by institutional investors. Comparatively, 18.4% of Atlas Lithium shares are held by institutional investors. 8.2% of MP Materials shares are held by company insiders. Comparatively, 22.8% of Atlas Lithium shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Volatility and Risk
MP Materials has a beta of 1.86, indicating that its stock price is 86% more volatile than the S&P 500. Comparatively, Atlas Lithium has a beta of -0.06, indicating that its stock price is 106% less volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| MP Materials | 1 | 0 | 16 | 2 | 3.00 |
| Atlas Lithium | 1 | 1 | 1 | 0 | 2.00 |
MP Materials currently has a consensus price target of $79.42, indicating a potential upside of 92.48%. Atlas Lithium has a consensus price target of $12.50, indicating a potential upside of 348.03%. Given Atlas Lithium’s higher probable upside, analysts clearly believe Atlas Lithium is more favorable than MP Materials.
Valuation & Earnings
This table compares MP Materials and Atlas Lithium”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| MP Materials | $224.44 million | 32.73 | -$85.87 million | ($0.42) | -98.25 |
| Atlas Lithium | $90,000.00 | 914.19 | -$28.11 million | ($1.52) | -1.84 |
Atlas Lithium has lower revenue, but higher earnings than MP Materials. MP Materials is trading at a lower price-to-earnings ratio than Atlas Lithium, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares MP Materials and Atlas Lithium’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| MP Materials | -28.00% | -2.27% | -1.13% |
| Atlas Lithium | N/A | -78.17% | -42.04% |
Summary
MP Materials beats Atlas Lithium on 9 of the 15 factors compared between the two stocks.
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.
About Atlas Lithium
Atlas Lithium Corporation operates as a mineral exploration and development company in Brazil. It operates the Minas Gerais lithium project that consists of 54 mineral rights covering an area of 59,275 acres located within the Brazilian Eastern Pegmatitic Province; and Northeastern Brazil lithium project, which consists of 7 mineral rights covering an area of 16,266 acres in the States of Paraíba and Rio Grande do Norte in northeastern Brazil. The company also owns 100% interests in various mining concessions for gold, diamond, and industrial sand; and early-stage projects and properties in other minerals, such as nickel, copper, rare earths, graphite, and titanium; as well as participates in iron and quartzite projects. The company was formerly known as Brazil Minerals, Inc. and changed its name to Atlas Lithium Corporation in October 2022. Atlas Lithium Corporation was founded in 2011 and is based in Belo Horizonte, Brazil.
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