Analyzing Almonty Industries (NASDAQ:ALM) and MP Materials (NYSE:MP)

MP Materials (NYSE:MP) and Almonty Industries (NASDAQ:ALM) are both mid-cap materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, dividends, valuation and analyst recommendations.

Institutional and Insider Ownership

52.5% of MP Materials shares are held by institutional investors. 8.2% of MP Materials shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for MP Materials and Almonty Industries, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MP Materials	2	1	13	1	2.76
Almonty Industries	0	2	5	1	2.88

MP Materials currently has a consensus price target of $76.29, indicating a potential upside of 56.38%. Almonty Industries has a consensus price target of $24.21, indicating a potential upside of 76.45%. Given Almonty Industries’ stronger consensus rating and higher possible upside, analysts clearly believe Almonty Industries is more favorable than MP Materials.

Profitability

This table compares MP Materials and Almonty Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MP Materials	-19.85%	-1.21%	-0.62%
Almonty Industries	125.89%	9.19%	3.97%

Valuation & Earnings

This table compares MP Materials and Almonty Industries”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MP Materials	$224.44 million	38.71	-$85.87 million	($0.34)	-143.49
Almonty Industries	$85.80 million	46.07	-$115.88 million	$0.16	85.75

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

Volatility and Risk

MP Materials has a beta of 1.94, suggesting that its stock price is 94% more volatile than the S&P 500. Comparatively, Almonty Industries has a beta of 3.75, suggesting that its stock price is 275% more volatile than the S&P 500.

Summary

Almonty Industries beats MP Materials on 9 of the 14 factors compared between the two stocks.

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.

About Almonty Industries

Almonty Industries Inc. is a producer of tungsten concentrate. The Company is currently mining, processing and shipping tungsten concentrate from its Panasqueira Mine in Portugal. Almonty Industries Inc. is based in TORONTO.