Financial Survey: USA Rare Earth (USAR) vs. The Competition

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

Analyst Ratings

This is a breakdown of current ratings and price targets 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	731	1823	3499	170	2.50

USA Rare Earth presently has a consensus target price of $26.00, indicating a potential upside of 59.12%. As a group, “MINING – MISC” companies have a potential upside of 14.66%. Given USA Rare Earth’s stronger consensus rating and higher possible upside, analysts plainly believe USA Rare Earth is more favorable than its rivals.

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
USA Rare Earth	N/A	$7.90 million	-60.52
USA Rare Earth Competitors	$10.19 billion	$448.48 million	-17.03

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.

Institutional and Insider Ownership

35.5% of shares of all “MINING – MISC” companies are held by institutional investors. 46.6% of USA Rare Earth shares are held by company insiders. Comparatively, 9.6% of shares of all “MINING – MISC” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

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%	-0.67%
USA Rare Earth Competitors	-1,016.34%	-12.38%	-4.50%

Volatility and Risk

USA Rare Earth has a beta of 0.77, suggesting that its stock 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 stock price is 39% less volatile than the S&P 500.

Summary

USA Rare Earth beats its rivals 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.