USA Rare Earth (NASDAQ:USAR – Get Free Report) and North American Construction Group (NYSE:NOA – Get Free Report) are both materials companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, analyst recommendations, earnings and valuation.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for USA Rare Earth and North American Construction Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| USA Rare Earth | 1 | 0 | 10 | 0 | 2.82 |
| North American Construction Group | 1 | 4 | 2 | 0 | 2.14 |
USA Rare Earth presently has a consensus price target of $33.71, suggesting a potential upside of 98.44%. North American Construction Group has a consensus price target of $25.75, suggesting a potential upside of 105.84%. Given North American Construction Group’s higher probable upside, analysts clearly believe North American Construction Group is more favorable than USA Rare Earth.
Risk & Volatility
Institutional and Insider Ownership
75.0% of North American Construction Group shares are held by institutional investors. 9.1% of USA Rare Earth shares are held by insiders. Comparatively, 9.7% of North American Construction Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares USA Rare Earth and North American Construction Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| USA Rare Earth | N/A | -9.04% | -7.13% |
| North American Construction Group | 2.41% | 6.23% | 1.50% |
Earnings and Valuation
This table compares USA Rare Earth and North American Construction Group”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| USA Rare Earth | $1.64 million | 2,535.24 | -$297.56 million | ($2.43) | -6.99 |
| North American Construction Group | $919.14 million | 0.38 | $24.22 million | $0.79 | 15.84 |
North American Construction Group has higher revenue and earnings than USA Rare Earth. USA Rare Earth is trading at a lower price-to-earnings ratio than North American Construction Group, indicating that it is currently the more affordable of the two stocks.
Summary
North American Construction Group beats USA Rare Earth on 10 of the 14 factors compared between the two stocks.
About USA Rare Earth
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.
About North American Construction Group
North American Construction Group Ltd. provides mining and heavy civil construction services to customers in the resource development and industrial construction sectors in Australia, Canada, and the United States. The company operates Heavy Equipment – Canada, Heavy Equipment – Australia, and Other segments. It also offers mine management services for thermal coal mines; and construction and operations support services in the Canadian oil sands region. In addition, the company provides fully maintained heavy equipment rentals and full service mine operations support at metallurgical and thermal coal mines; heavy equipment rentals to iron ore, gold and lithium producers; and heavy equipment maintenance, component remanufacturing, and full equipment rebuild services to mining companies and other heavy equipment operators, as well as supplies production-critical components to the mining and construction industry. As of December 31, 2023, it operated a heavy equipment fleet of 900 units. The company was formerly known as North American Energy Partners Inc. and changed its name to North American Construction Group Ltd. in April 2018. North American Construction Group Ltd. was incorporated in 1953 and is headquartered in Acheson, Canada.
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