Reviewing Perpetua Resources (NASDAQ:PPTA) and Lynas Rare Earths (OTCMKTS:LYSDY)

Lynas Rare Earths (OTCMKTS:LYSDY) and Perpetua Resources (NASDAQ:PPTA) are both basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, earnings, institutional ownership, valuation and risk.

Valuation & Earnings

This table compares Lynas Rare Earths and Perpetua Resources”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lynas Rare Earths	$356.61 million	32.09	$5.17 million	N/A	N/A
Perpetua Resources	N/A	N/A	-$14.48 million	($0.50)	-57.72

Lynas Rare Earths has higher revenue and earnings than Perpetua Resources.

Institutional and Insider Ownership

70.1% of Perpetua Resources shares are owned by institutional investors. 1.5% of Perpetua Resources shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Lynas Rare Earths has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500. Comparatively, Perpetua Resources has a beta of 0.03, indicating that its share price is 97% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for Lynas Rare Earths and Perpetua Resources, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lynas Rare Earths	0	2	0	2	3.00
Perpetua Resources	1	0	6	1	2.88

Perpetua Resources has a consensus target price of $32.50, suggesting a potential upside of 12.61%. Given Perpetua Resources’ higher possible upside, analysts plainly believe Perpetua Resources is more favorable than Lynas Rare Earths.

Profitability

This table compares Lynas Rare Earths and Perpetua Resources’ 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
Perpetua Resources	N/A	-14.14%	-13.71%

Summary

Lynas Rare Earths beats Perpetua Resources on 7 of the 11 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 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.

About Perpetua Resources

Perpetua Resources Corp. engages in the exploration and development of mineral properties in the United States. The company primarily explores for gold, silver, and antimony deposits. Its principal asset is the 100% owned Stibnite Gold project, which includes 1,672 unpatented lode claims, mill sites, and patented land holdings covering an area of approximately 11,548 hectares located in Valley County, Idaho. The company was formerly known as Midas Gold Corp. and changed its name to Perpetua Resources Corp. in February 2021. Perpetua Resources Corp. was incorporated in 2011 and is headquartered in Boise, Idaho.