Analyzing Lynas Rare Earths (OTCMKTS:LYSDY) and MP Materials (NYSE:MP)

MP Materials (NYSE:MP) and Lynas Rare Earths (OTCMKTS:LYSDY) are both large-cap basic materials companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, analyst recommendations, institutional ownership, dividends, valuation and earnings.

Institutional & Insider Ownership

52.6% of MP Materials shares are held by institutional investors. 9.5% of MP Materials shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk and Volatility

MP Materials has a beta of 1.55, indicating that its stock price is 55% more volatile than the S&P 500. Comparatively, Lynas Rare Earths has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500.

Earnings and Valuation

This table compares MP Materials and Lynas Rare Earths”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MP Materials	$224.44 million	45.44	-$85.87 million	($0.52)	-110.66
Lynas Rare Earths	$356.61 million	39.74	$5.17 million	N/A	N/A

Lynas Rare Earths has higher revenue and earnings than MP Materials.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MP Materials	-38.26%	-4.28%	-2.07%
Lynas Rare Earths	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent recommendations for MP Materials and Lynas Rare Earths, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MP Materials	1	0	13	2	3.00
Lynas Rare Earths	0	2	0	3	3.20

MP Materials presently has a consensus target price of $78.91, suggesting a potential upside of 37.13%. Given MP Materials’ higher possible upside, equities analysts plainly believe MP Materials is more favorable than Lynas Rare Earths.

Summary

Lynas Rare Earths beats MP Materials on 7 of the 13 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 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 interests in the Mount Weld and Kalgoorlie projects in Western Australia. Its products include lanthanum, cerium, praseodymium, neodymium, samarium, europium, gadolinium, terbium, and dysprosium. 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.