Rare Element Resources (OTCMKTS:REEMF – Get Free Report) and enCore Energy (NASDAQ:EU – Get Free Report) are both small-cap basic materials companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, analyst recommendations, risk and dividends.
Analyst Recommendations
This is a summary of current recommendations and price targets for Rare Element Resources and enCore Energy, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rare Element Resources | 0 | 0 | 0 | 0 | 0.00 |
| enCore Energy | 1 | 1 | 1 | 2 | 2.80 |
enCore Energy has a consensus price target of $3.83, indicating a potential upside of 93.60%. Given enCore Energy’s stronger consensus rating and higher probable upside, analysts clearly believe enCore Energy is more favorable than Rare Element Resources.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Rare Element Resources | N/A | N/A | -$4.90 million | ($0.01) | -70.00 |
| enCore Energy | $43.15 million | 8.91 | -$56.86 million | ($0.31) | -6.39 |
Rare Element Resources has higher earnings, but lower revenue than enCore Energy. Rare Element Resources is trading at a lower price-to-earnings ratio than enCore Energy, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Rare Element Resources and enCore Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Rare Element Resources | N/A | -20.54% | -18.86% |
| enCore Energy | -131.75% | -20.72% | -14.70% |
Risk and Volatility
Rare Element Resources has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500. Comparatively, enCore Energy has a beta of 2.41, meaning that its stock price is 141% more volatile than the S&P 500.
Insider & Institutional Ownership
20.9% of enCore Energy shares are held by institutional investors. 1.3% of Rare Element Resources shares are held by company insiders. Comparatively, 3.9% of enCore Energy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Summary
enCore Energy beats Rare Element Resources on 10 of the 14 factors compared between the two stocks.
About Rare Element Resources
Rare Element Resources Ltd. engages in the exploration of mineral properties in the United States and Canada. It holds 100% interest in the Bear Lodge property that comprises the Bear Lodge REE project; and the Sundance Gold project located in Crook County, northeast Wyoming. Rare Element Resources Ltd. is headquartered in Littleton, Colorado.
About enCore Energy
enCore Energy Corp. engages in the acquisition, exploration, and development of uranium resource properties in the United States. It holds a 100% interest in Crownpoint and Hosta Butte uranium project area covers 3,020 acres located in the Grants Uranium Belt, New Mexico. The company also holds interest in the Marquez-Juan Tafoya property comprises 14,582 acres located in McKinley and Sandoval counties of New Mexico; and the Nose Rock project comprising 42 owned unpatented lode mining claims comprising approximately 800 acres located in McKinley County, New Mexico. In addition, it holds interest in the White Canyon District and Utah property package, including the Geitus, Blue Jay, Marcy Look, and Cedar Mountain projects located to the northwest of the White Mesa Mill at Blanding County, Utah. Further, the company holds a 100% interest in Dewey Burdock project comprises approximately 12,613 surface acres and 16,962 net mineral acres located in South Dakota; Gas Hills project consists of approximately 1,280 surface acres and 12,960 net mineral acres of unpatented lode mining claims located in Wyoming; and West Largo project consist of approximately 3,840 acres located in McKinley County, New Mexico. Additionally, it holds a 100% interest in Ambrosia Lake – Treeline property consists of deeded mineral rights totaling 24,555 acres and unpatented mining claims covering approximately 1,700 acres; and Checkerboard mineral rights covering a land position of approximately 300,000 acres located in the Grants Uranium District. The company was formerly known as Wolfpack Gold Corp. and changed its name to enCore Energy Corp. in August 2014. enCore Energy Corp. is headquartered in Corpus Christi, Texas.
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