Comparing USA Rare Earth (NASDAQ:USAR) and Canadian Zeolite (OTCMKTS:IZCFF)

USA Rare Earth (NASDAQ:USAR) and Canadian Zeolite (OTCMKTS:IZCFF) are both basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, dividends, risk, institutional ownership, profitability, analyst recommendations and valuation.

Risk and Volatility

USA Rare Earth has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500. Comparatively, Canadian Zeolite has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for USA Rare Earth and Canadian Zeolite, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
USA Rare Earth	1	0	6	0	2.71
Canadian Zeolite	0	0	0	0	0.00

USA Rare Earth presently has a consensus target price of $26.33, suggesting a potential upside of 6.31%. Given USA Rare Earth’s stronger consensus rating and higher possible upside, equities research analysts plainly believe USA Rare Earth is more favorable than Canadian Zeolite.

Valuation and Earnings

This table compares USA Rare Earth and Canadian Zeolite”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
USA Rare Earth	N/A	N/A	$7.90 million	($0.52)	-47.63
Canadian Zeolite	$450,000.00	N/A	-$370,000.00	($0.01)	-0.55

USA Rare Earth has higher earnings, but lower revenue than Canadian Zeolite. USA Rare Earth is trading at a lower price-to-earnings ratio than Canadian Zeolite, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
USA Rare Earth	N/A	N/A	-16.23%
Canadian Zeolite	N/A	N/A	N/A

Summary

USA Rare Earth beats Canadian Zeolite on 5 of the 9 factors compared between the two stocks.

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.

About Canadian Zeolite

International Zeolite Corp. explores for and develops mineral properties in Canada. It operates through two segments, Exploration and Development, and Retail and Commercial. The company markets and supplies natural zeolite and zeolite-infused products for agriculture, industrial, and home use; and develops, markets, and sells industrial commercial products from the production of its properties, as well as supplies raw materials from third party suppliers. It also has interests in the Bromley Creek zeolite project, which consists of one mineral lease and four mineral claims covering approximately 1,134.75 hectares located near Princeton, British Columbia; and the Sun Group zeolite project covering approximately 527.167 hectares located in British Columbia. The company was formerly known as Canadian Zeolite Corp. and changed its name to International Zeolite Corp. in March 2018. International Zeolite Corp. was incorporated in 1987 and is headquartered in Vancouver, Canada.