Fortuna Mining (NYSE:FSM – Get Free Report) and MP Materials (NYSE:MP – Get Free Report) are both basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.
Profitability
This table compares Fortuna Mining and MP Materials’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Fortuna Mining | 31.07% | 16.26% | 11.95% |
| MP Materials | -28.00% | -2.27% | -1.13% |
Analyst Recommendations
This is a summary of current ratings and price targets for Fortuna Mining and MP Materials, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Fortuna Mining | 1 | 0 | 4 | 0 | 2.60 |
| MP Materials | 1 | 0 | 15 | 3 | 3.05 |
Valuation & Earnings
This table compares Fortuna Mining and MP Materials”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Fortuna Mining | $947.06 million | 2.75 | $287.47 million | $1.06 | 8.11 |
| MP Materials | $224.44 million | 43.23 | -$85.87 million | ($0.42) | -129.75 |
Fortuna Mining has higher revenue and earnings than MP Materials. MP Materials is trading at a lower price-to-earnings ratio than Fortuna Mining, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Fortuna Mining has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500. Comparatively, MP Materials has a beta of 1.86, suggesting that its share price is 86% more volatile than the S&P 500.
Institutional & Insider Ownership
33.8% of Fortuna Mining shares are owned by institutional investors. Comparatively, 52.6% of MP Materials shares are owned by institutional investors. 1.0% of Fortuna Mining shares are owned by company insiders. Comparatively, 8.2% of MP Materials shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Summary
MP Materials beats Fortuna Mining on 8 of the 15 factors compared between the two stocks.
About Fortuna Mining
Fortuna Mining Corp. engages in the precious and base metal mining in Argentina, Burkina Faso, Mexico, Peru, and Côte d’Ivoire. It operates through Mansfield, Sanu, Sango, Cuzcatlan, Bateas, and Corporate segments. The company primarily explores for silver, lead, zinc, and gold. Its flagship project is the Séguéla gold mine, which consists of approximately 62,000 hectares and is located in the Worodougou Region of the Woroba District, Côte d’Ivoire. The company was formerly known as Fortuna Silver Mines Inc. and changed its name to Fortuna Mining Corp. in June 2024. Fortuna Mining Corp. was incorporated in 1990 and is based 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.
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