Rare Element Resources (OTCMKTS:REEMF) vs. MP Materials (NYSE:MP) Head-To-Head Comparison

Rare Element Resources (OTCMKTS:REEMF) and MP Materials (NYSE:MP) are both basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, earnings, dividends and institutional ownership.

Valuation and Earnings

This table compares Rare Element Resources and MP Materials”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rare Element Resources	N/A	N/A	-$18.45 million	($0.01)	-92.00
MP Materials	$203.85 million	59.51	-$65.42 million	($0.71)	-96.40

Rare Element Resources has higher earnings, but lower revenue than MP Materials. MP Materials is trading at a lower price-to-earnings ratio than Rare Element Resources, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Rare Element Resources has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500. Comparatively, MP Materials has a beta of 1.62, suggesting that its share price is 62% more volatile than the S&P 500.

Institutional & Insider Ownership

52.6% of MP Materials shares are held by institutional investors. 1.3% of Rare Element Resources shares are held by insiders. Comparatively, 12.6% of MP Materials shares 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.

Analyst Recommendations

This is a summary of current recommendations for Rare Element Resources and MP Materials, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rare Element Resources	0	0	0	0	0.00
MP Materials	1	0	14	1	2.94

MP Materials has a consensus price target of $78.91, suggesting a potential upside of 15.29%. Given MP Materials’ stronger consensus rating and higher probable upside, analysts clearly believe MP Materials is more favorable than Rare Element Resources.

Profitability

This table compares Rare Element Resources and MP Materials’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rare Element Resources	N/A	-25.44%	-23.32%
MP Materials	-50.55%	-7.69%	-3.59%

Summary

MP Materials beats Rare Element Resources on 10 of the 14 factors compared between the two stocks.

About Rare Element Resources

Rare Element Resources Ltd. engages in the exploration of mineral properties in the United States and Canada. It holds 100% interest in the Bear Lodge property that comprises the Bear Lodge REE project; and the Sundance Gold project located in Crook County, northeast Wyoming. Rare Element Resources Ltd. is headquartered in Littleton, Colorado.

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.