MP Materials (NYSE:MP – Get Free Report) and Elemental Royalty (NASDAQ:ELE – Get Free Report) are both materials companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.
Profitability
This table compares MP Materials and Elemental Royalty’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% |
| Elemental Royalty | 4.01% | 0.53% | 0.46% |
Institutional & Insider Ownership
52.5% of MP Materials shares are owned by institutional investors. 8.2% of MP Materials shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| MP Materials | 2 | 0 | 12 | 2 | 2.88 |
| Elemental Royalty | 0 | 2 | 1 | 0 | 2.33 |
MP Materials currently has a consensus target price of $78.21, suggesting a potential upside of 43.71%. Elemental Royalty has a consensus target price of $33.00, suggesting a potential upside of 55.73%. Given Elemental Royalty’s higher probable upside, analysts clearly believe Elemental Royalty is more favorable than MP Materials.
Earnings and Valuation
This table compares MP Materials and Elemental Royalty”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| MP Materials | $305.38 million | 31.74 | -$85.87 million | ($0.34) | -160.06 |
| Elemental Royalty | $43.64 million | 31.23 | $1.77 million | $0.08 | 264.88 |
Elemental Royalty has lower revenue, but higher earnings than MP Materials. MP Materials is trading at a lower price-to-earnings ratio than Elemental Royalty, indicating that it is currently the more affordable of 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 Elemental Royalty
Elemental Royalty Corporation engages in the acquisition and generation of precious metal royalties. The company holds royalties in gold, silver, and copper projects. It operates in North America; South America; Australia; Africa; and internationally. The company was formerly known as Elemental Altus Royalties Corp. and changed its name to Elemental Royalty Corporation in November 2025. The company is headquartered in Vancouver, Canada.
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