MP Materials (NYSE:MP – Get Free Report) and Worthington Steel (NYSE:WS – Get Free Report) are both mid-cap materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, analyst recommendations, earnings, dividends, risk, institutional ownership and valuation.
Insider and Institutional Ownership
52.5% of MP Materials shares are owned by institutional investors. Comparatively, 45.4% of Worthington Steel shares are owned by institutional investors. 8.2% of MP Materials shares are owned by insiders. Comparatively, 2.7% of Worthington Steel shares are owned by 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.
Earnings & Valuation
This table compares MP Materials and Worthington Steel”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| MP Materials | $305.38 million | 23.04 | -$85.87 million | ($0.34) | -116.21 |
| Worthington Steel | $5.30 billion | 0.40 | $8.50 million | ($0.61) | -67.05 |
Worthington Steel has higher revenue and earnings than MP Materials. MP Materials is trading at a lower price-to-earnings ratio than Worthington Steel, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares MP Materials and Worthington Steel’s 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% |
| Worthington Steel | -0.56% | 7.49% | 3.14% |
Analyst Recommendations
This is a breakdown of recent recommendations for MP Materials and Worthington Steel, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| MP Materials | 2 | 1 | 13 | 1 | 2.76 |
| Worthington Steel | 1 | 1 | 1 | 0 | 2.00 |
MP Materials presently has a consensus price target of $71.92, indicating a potential upside of 82.01%. Worthington Steel has a consensus price target of $46.00, indicating a potential upside of 12.47%. Given MP Materials’ stronger consensus rating and higher probable upside, research analysts clearly believe MP Materials is more favorable than Worthington Steel.
Risk and Volatility
MP Materials has a beta of 1.98, indicating that its share price is 98% more volatile than the S&P 500. Comparatively, Worthington Steel has a beta of 2.24, indicating that its share price is 124% more volatile than the S&P 500.
Summary
MP Materials beats Worthington Steel on 8 of the 15 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 Worthington Steel
Worthington Steel, Inc. operates as a steel processor in North America. It offers carbon flat-rolled steel and tailor welded blanks, as well as electrical steel laminations; and aluminum tailor welded blanks. The company serves various end-markets, including automotive, heavy truck, agriculture, construction, and energy. Worthington Steel, Inc. was incorporated in 2023 and is based in Columbus, Ohio.
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