Head-To-Head Contrast: MP Materials (NYSE:MP) vs. Paladin Energy (OTCMKTS:PALAF)

Paladin Energy (OTCMKTS:PALAF) and MP Materials (NYSE:MP) are both basic materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, earnings, profitability, institutional ownership and analyst recommendations.

Institutional and Insider Ownership

0.0% of Paladin Energy shares are owned by institutional investors. Comparatively, 52.5% of MP Materials shares are owned by institutional investors. 9.5% of MP Materials shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Paladin Energy and MP Materials’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Paladin Energy	N/A	N/A	N/A
MP Materials	-50.55%	-7.69%	-3.59%

Risk & Volatility

Paladin Energy has a beta of 1.34, meaning that its stock price is 34% more volatile than the S&P 500. Comparatively, MP Materials has a beta of 1.62, meaning that its stock price is 62% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Paladin Energy and MP Materials, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paladin Energy	0	3	0	0	2.00
MP Materials	1	0	13	1	2.93

Paladin Energy presently has a consensus target price of $9.05, suggesting a potential downside of 0.66%. MP Materials has a consensus target price of $78.91, suggesting a potential upside of 33.38%. Given MP Materials’ stronger consensus rating and higher possible upside, analysts plainly believe MP Materials is more favorable than Paladin Energy.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paladin Energy	$177.68 million	23.04	-$44.64 million	($0.12)	-75.92
MP Materials	$232.74 million	45.05	-$65.42 million	($0.71)	-83.33

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

Summary

MP Materials beats Paladin Energy on 9 of the 15 factors compared between the two stocks.

About Paladin Energy

Paladin Energy Ltd develops, explores for, owns, and operates uranium mines in Australia, Canada, and Africa. The company operates through Exploration, Namibia, and Australia segments. Its flagship project is the Langer Heinrich mine located in the Namib Desert in Namibia. The company was formerly known as Paladin Resources Ltd and changed its name to Paladin Energy Limited in November 2007. Paladin Energy Ltd was incorporated in 1993 and is headquartered in Perth, Australia.

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.