MP Materials (NYSE:MP – Get Free Report) and Avino Silver & Gold Mines (NYSE:ASM – Get Free Report) are both basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, dividends, institutional ownership and risk.
Profitability
This table compares MP Materials and Avino Silver & Gold Mines’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| MP Materials | -32.09% | -8.44% | -3.98% |
| Avino Silver & Gold Mines | 6.57% | 12.13% | 10.16% |
Volatility and Risk
MP Materials has a beta of 2.32, suggesting that its stock price is 132% more volatile than the S&P 500. Comparatively, Avino Silver & Gold Mines has a beta of 1.87, suggesting that its stock price is 87% more volatile than the S&P 500.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| MP Materials | $203.86 million | 19.24 | $24.31 million | ($0.59) | -40.67 |
| Avino Silver & Gold Mines | $54.33 million | 3.66 | $540,000.00 | $0.02 | 70.50 |
MP Materials has higher revenue and earnings than Avino Silver & Gold Mines. MP Materials is trading at a lower price-to-earnings ratio than Avino Silver & Gold Mines, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
52.5% of MP Materials shares are owned by institutional investors. Comparatively, 3.1% of Avino Silver & Gold Mines shares are owned by institutional investors. 12.6% of MP Materials shares are owned by company insiders. Comparatively, 4.3% of Avino Silver & Gold Mines shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of current recommendations and price targets for MP Materials and Avino Silver & Gold Mines, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| MP Materials | 0 | 4 | 6 | 0 | 2.60 |
| Avino Silver & Gold Mines | 0 | 0 | 3 | 0 | 3.00 |
MP Materials presently has a consensus price target of $22.45, suggesting a potential downside of 6.44%. Avino Silver & Gold Mines has a consensus price target of $1.97, suggesting a potential upside of 39.48%. Given Avino Silver & Gold Mines’ stronger consensus rating and higher probable upside, analysts plainly believe Avino Silver & Gold Mines is more favorable than MP Materials.
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 Avino Silver & Gold Mines
Avino Silver & Gold Mines Ltd. engages in the mining and exploration activities. It focuses on silver reserves in the Durango region of North Central Mexico. It operates through the Silver, Gold, and Copper segments. The company was founded on May 15, 1968 and is headquartered in Vancouver, Canada.
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