Entree Gold (OTCMKTS:ERLFF) and MP Materials (NYSE:MP) Critical Analysis

Entree Gold (OTCMKTS:ERLFF) and MP Materials (NYSE:MP) are both basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, valuation, analyst recommendations, dividends and profitability.

Profitability

This table compares Entree Gold and MP Materials’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Entree Gold	N/A	N/A	-228.15%
MP Materials	-50.55%	-7.69%	-3.59%

Risk & Volatility

Entree Gold has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500. Comparatively, MP Materials has a beta of 1.62, suggesting that its stock price is 62% more volatile than the S&P 500.

Institutional & Insider Ownership

52.6% of MP Materials shares are owned by institutional investors. 3.4% of Entree Gold shares are owned by insiders. Comparatively, 12.6% of MP Materials shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for Entree Gold and MP Materials, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Entree Gold	0	0	0	0	0.00
MP Materials	1	0	13	1	2.93

MP Materials has a consensus target price of $78.91, suggesting a potential upside of 27.31%. Given MP Materials’ stronger consensus rating and higher probable upside, analysts clearly believe MP Materials is more favorable than Entree Gold.

Earnings & Valuation

This table compares Entree Gold and MP Materials”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Entree Gold	N/A	N/A	-$14.32 million	($0.10)	-17.30
MP Materials	$203.85 million	53.89	-$65.42 million	($0.71)	-87.30

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

Summary

MP Materials beats Entree Gold on 9 of the 14 factors compared between the two stocks.

About Entree Gold

Entrée Resources Ltd., a mining company, engages in the exploration, evaluation, and development of mineral property interests in Canada. Its principal asset is the Entrée/Oyu Tolgoi joint venture property comprising Hugo North Extension copper-gold deposit and the Heruga copper-gold-molybdenum deposit located in Mongolia. The company was formerly known as Entrée Gold Inc. and changed its name to Entrée Resources Ltd. in May 2017. Entrée Resources Ltd. was incorporated in 1995 and is headquartered in Vancouver, Canada.

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.