Analyzing MP Materials (NYSE:MP) and Deep Yellow (OTCMKTS:DYLLF)

MP Materials (NYSE:MP) and Deep Yellow (OTCMKTS:DYLLF) are both basic materials companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.

Institutional & Insider Ownership

52.5% of MP Materials shares are owned by institutional investors. 8.2% of MP Materials shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations for MP Materials and Deep Yellow, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MP Materials	1	0	16	2	3.00
Deep Yellow	0	1	0	1	3.00

MP Materials presently has a consensus target price of $79.42, indicating a potential upside of 78.05%. Deep Yellow has a consensus target price of $1.85, indicating a potential upside of 98.92%. Given Deep Yellow’s higher probable upside, analysts clearly believe Deep Yellow is more favorable than MP Materials.

Earnings and Valuation

This table compares MP Materials and Deep Yellow”s gross 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	35.38	-$85.87 million	($0.42)	-106.21
Deep Yellow	$7.51 million	120.48	$4.64 million	N/A	N/A

Deep Yellow has lower revenue, but higher earnings than MP Materials.

Volatility and Risk

MP Materials has a beta of 1.86, meaning that its share price is 86% more volatile than the S&P 500. Comparatively, Deep Yellow has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500.

Profitability

This table compares MP Materials and Deep Yellow’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%
Deep Yellow	N/A	N/A	N/A

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 Deep Yellow

Deep Yellow Limited, together with its subsidiaries, operates as a uranium exploration company in Namibia. The company holds a 100% interest in the Reptile project, which covers an area of 896 square kilometers (km2); 65% interest in the Nova Joint Venture covering an area of 599 km2; and 85% interest in the Yellow Dune Joint Venture covering an area of 190 km2. It is involved in the iron ore exploration and property investment businesses. The company was incorporated in 1985 and is headquartered in Subiaco, Australia.