Head to Head Analysis: Atlas Lithium (NASDAQ:ATLX) & MP Materials (NYSE:MP)

Atlas Lithium (NASDAQ:ATLX) and MP Materials (NYSE:MP) are both basic materials companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, analyst recommendations, profitability, institutional ownership, dividends and valuation.

Earnings and Valuation

This table compares Atlas Lithium and MP Materials”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Atlas Lithium	$90,000.00	891.25	-$28.11 million	($1.52)	-1.79
MP Materials	$254.28 million	29.16	-$85.87 million	($0.42)	-99.18

Atlas Lithium has higher earnings, but lower revenue than MP Materials. MP Materials is trading at a lower price-to-earnings ratio than Atlas Lithium, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Atlas Lithium and MP Materials’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Atlas Lithium	N/A	-78.17%	-42.04%
MP Materials	-28.00%	-2.27%	-1.13%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Atlas Lithium and MP Materials, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atlas Lithium	1	1	1	0	2.00
MP Materials	1	0	16	2	3.00

Atlas Lithium presently has a consensus target price of $12.50, indicating a potential upside of 359.56%. MP Materials has a consensus target price of $78.35, indicating a potential upside of 88.08%. Given Atlas Lithium’s higher probable upside, equities research analysts plainly believe Atlas Lithium is more favorable than MP Materials.

Institutional and Insider Ownership

18.4% of Atlas Lithium shares are held by institutional investors. Comparatively, 52.5% of MP Materials shares are held by institutional investors. 22.8% of Atlas Lithium shares are held by company insiders. Comparatively, 8.2% of MP Materials shares are held 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.

Risk & Volatility

Atlas Lithium has a beta of -0.06, meaning that its share price is 106% less volatile than the S&P 500. Comparatively, MP Materials has a beta of 1.86, meaning that its share price is 86% more volatile than the S&P 500.

Summary

MP Materials beats Atlas Lithium on 9 of the 15 factors compared between the two stocks.

About Atlas Lithium

Atlas Lithium Corporation operates as a mineral exploration and development company in Brazil. It operates the Minas Gerais lithium project that consists of 54 mineral rights covering an area of 59,275 acres located within the Brazilian Eastern Pegmatitic Province; and Northeastern Brazil lithium project, which consists of 7 mineral rights covering an area of 16,266 acres in the States of Paraíba and Rio Grande do Norte in northeastern Brazil. The company also owns 100% interests in various mining concessions for gold, diamond, and industrial sand; and early-stage projects and properties in other minerals, such as nickel, copper, rare earths, graphite, and titanium; as well as participates in iron and quartzite projects. The company was formerly known as Brazil Minerals, Inc. and changed its name to Atlas Lithium Corporation in October 2022. Atlas Lithium Corporation was founded in 2011 and is based in Belo Horizonte, Brazil.

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.