Financial Comparison: USA Rare Earth (USAR) and Its Rivals

USA Rare Earth (NASDAQ:USAR) is one of 103 public companies in the “MINING – MISC” industry, but how does it contrast to its rivals? We will compare USA Rare Earth to similar companies based on the strength of its risk, earnings, profitability, analyst recommendations, valuation, institutional ownership and dividends.

Insider and Institutional Ownership

35.5% of shares of all “MINING – MISC” companies are owned by institutional investors. 46.6% of USA Rare Earth shares are owned by company insiders. Comparatively, 9.4% of shares of all “MINING – MISC” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility and Risk

USA Rare Earth has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500. Comparatively, USA Rare Earth’s rivals have a beta of 0.61, suggesting that their average share price is 39% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for USA Rare Earth and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
USA Rare Earth	1	0	4	0	2.60
USA Rare Earth Competitors	763	1850	3531	172	2.49

USA Rare Earth currently has a consensus price target of $26.33, indicating a potential upside of 115.14%. As a group, “MINING – MISC” companies have a potential upside of 18.71%. Given USA Rare Earth’s stronger consensus rating and higher possible upside, equities analysts clearly believe USA Rare Earth is more favorable than its rivals.

Valuation & Earnings

This table compares USA Rare Earth and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
USA Rare Earth	N/A	$7.90 million	-23.54
USA Rare Earth Competitors	$10.20 billion	$448.48 million	-15.46

USA Rare Earth’s rivals have higher revenue and earnings than USA Rare Earth. USA Rare Earth is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares USA Rare Earth and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
USA Rare Earth	N/A	-16.58%	-16.23%
USA Rare Earth Competitors	-853.98%	-10.22%	-3.55%

Summary

USA Rare Earth rivals beat USA Rare Earth on 7 of the 13 factors compared.

USA Rare Earth Company Profile

USA Rare Earth, Inc. is domestic supplier of rare earth magnets and heavy rare earth elements. It is developing a vertically integrated, domestic supply chain for rare earth element magnet production, with a facility in Stillwater, Oklahoma, and mining rights to the Round Top heavy rare earth and critical minerals deposit in West Texas. The company was founded in May 2019 and is headquartered in Stillwater, OK.