Head to Head Contrast: Almonty Industries (NASDAQ:ALM) & Lynas Rare Earths (OTCMKTS:LYSCF)

Lynas Rare Earths (OTCMKTS:LYSCF) and Almonty Industries (NASDAQ:ALM) are both basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, earnings, institutional ownership and profitability.

Insider and Institutional Ownership

5.6% of Lynas Rare Earths shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Lynas Rare Earths and Almonty Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lynas Rare Earths	N/A	N/A	N/A
Almonty Industries	-496.03%	-26.23%	-9.07%

Valuation & Earnings

This table compares Lynas Rare Earths and Almonty Industries”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lynas Rare Earths	N/A	N/A	N/A	($0.17)	-78.30
Almonty Industries	$23.27 million	185.07	-$115.88 million	($0.58)	-26.48

Lynas Rare Earths has higher earnings, but lower revenue than Almonty Industries. Lynas Rare Earths is trading at a lower price-to-earnings ratio than Almonty Industries, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current recommendations for Lynas Rare Earths and Almonty Industries, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lynas Rare Earths	0	0	2	0	3.00
Almonty Industries	1	0	4	0	2.60

Lynas Rare Earths currently has a consensus price target of $17.80, indicating a potential upside of 31.10%. Almonty Industries has a consensus price target of $18.38, indicating a potential upside of 19.63%. Given Lynas Rare Earths’ stronger consensus rating and higher probable upside, analysts clearly believe Lynas Rare Earths is more favorable than Almonty Industries.

Summary

Lynas Rare Earths beats Almonty Industries on 7 of the 10 factors compared between the two stocks.

About Lynas Rare Earths

Lynas Rare Earths Limited, together with its subsidiaries, engages in the exploration, development, mining, extraction, and processing of rare earth minerals in Australia and Malaysia. The company holds an interest in the Mount Weld project, Western Australia; and the Kalgoorlie project. Its products include yttrium, lanthanum, cerium, praseodymium, neodymium, promethium, samarium, europium, gadolinium, terbium, dysprosium, holmium, erbium, thulium, ytterbium, and lutetium. The company also develops and operates advanced material processing and concentration plants, as well as offers corporate services. The company was formerly known as Lynas Corporation Limited and changed its name to Lynas Corporation Limited in November 2020. Lynas Rare Earths Limited was incorporated in 1983 and is based in Perth, Australia.

About Almonty Industries

Almonty Industries Inc. is a producer of tungsten concentrate. The Company is currently mining, processing and shipping tungsten concentrate from its Panasqueira Mine in Portugal. Almonty Industries Inc. is based in TORONTO.