New Era Helium (NASDAQ:NEHC – Get Free Report) and MP Materials (NYSE:MP – Get Free Report) are both basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, institutional ownership, risk, analyst recommendations and profitability.
Volatility & Risk
New Era Helium has a beta of 0.19, meaning that its share price is 81% less volatile than the S&P 500. Comparatively, MP Materials has a beta of 1.6, meaning that its share price is 60% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and target prices for New Era Helium and MP Materials, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| New Era Helium | 0 | 0 | 0 | 0 | 0.00 |
| MP Materials | 1 | 0 | 13 | 2 | 3.00 |
Profitability
This table compares New Era Helium and MP Materials’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| New Era Helium | N/A | N/A | N/A |
| MP Materials | -50.55% | -7.69% | -3.59% |
Institutional & Insider Ownership
21.9% of New Era Helium shares are held by institutional investors. Comparatively, 52.6% of MP Materials shares are held by institutional investors. 6.3% of New Era Helium shares are held by company insiders. Comparatively, 12.6% of MP Materials shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares New Era Helium and MP Materials”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| New Era Helium | $530,024.00 | 134.36 | -$13.78 million | ($0.41) | -12.00 |
| MP Materials | $203.85 million | 50.43 | -$65.42 million | ($0.71) | -81.69 |
New Era Helium has higher earnings, but lower revenue than MP Materials. MP Materials is trading at a lower price-to-earnings ratio than New Era Helium, indicating that it is currently the more affordable of the two stocks.
Summary
MP Materials beats New Era Helium on 8 of the 15 factors compared between the two stocks.
About New Era Helium
New Era Helium, Inc. is an exploration and production company that sources helium produced in association with the production of natural gas reserves in North America. The company was founded in 2023 and is headquartered in Midland, TX.
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.
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