Financial Comparison: USA Rare Earth (USAR) versus Its Competitors

USA Rare Earth (NASDAQ:USAR) is one of 103 publicly-traded companies in the “MINING – MISC” industry, but how does it compare to its competitors? We will compare USA Rare Earth to related businesses based on the strength of its analyst recommendations, earnings, valuation, dividends, risk, profitability and institutional ownership.

Profitability

This table compares USA Rare Earth and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
USA Rare Earth	N/A	-16.58%	-0.67%
USA Rare Earth Competitors	-1,016.34%	-12.38%	-4.50%

Institutional and Insider Ownership

35.5% of shares of all “MINING – MISC” companies are held by institutional investors. 46.6% of USA Rare Earth shares are held by company insiders. Comparatively, 9.6% of shares of all “MINING – MISC” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

USA Rare Earth has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500. Comparatively, USA Rare Earth’s competitors have a beta of 0.61, suggesting that their average stock price is 39% less volatile than the S&P 500.

Earnings & Valuation

This table compares USA Rare Earth and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
USA Rare Earth	N/A	$7.90 million	-62.63
USA Rare Earth Competitors	$10.19 billion	$448.48 million	-18.12

USA Rare Earth’s competitors have higher revenue and earnings than USA Rare Earth. USA Rare Earth is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of recent recommendations and price targets for USA Rare Earth and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
USA Rare Earth	1	0	4	0	2.60
USA Rare Earth Competitors	731	1823	3498	170	2.50

USA Rare Earth currently has a consensus target price of $26.00, indicating a potential upside of 53.76%. As a group, “MINING – MISC” companies have a potential upside of 10.38%. Given USA Rare Earth’s stronger consensus rating and higher probable upside, research analysts plainly believe USA Rare Earth is more favorable than its competitors.

Summary

USA Rare Earth beats its competitors on 7 of the 13 factors compared.

About USA Rare Earth

USA Rare Earth, Inc. is domestic supplier of rare earth magnets and heavy rare earth elements. It is developing a vertically integrated, domestic supply chain for rare earth element magnet production, with a facility in Stillwater, Oklahoma, and mining rights to the Round Top heavy rare earth and critical minerals deposit in West Texas. The company was founded in May 2019 and is headquartered in Stillwater, OK.