Critical Analysis: Lynas Rare Earths (LYSCF) vs. Its Rivals

Lynas Rare Earths (OTCMKTS:LYSCF) is one of 1,989 publicly-traded companies in the “Metals & Mining” industry, but how does it contrast to its peers? We will compare Lynas Rare Earths to similar companies based on the strength of its institutional ownership, risk, profitability, dividends, analyst recommendations, valuation and earnings.

Institutional and Insider Ownership

5.6% of Lynas Rare Earths shares are owned by institutional investors. Comparatively, 16.1% of shares of all “Metals & Mining” companies are owned by institutional investors. 17.6% of shares of all “Metals & Mining” companies are owned by 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 recent ratings and target prices for Lynas Rare Earths and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lynas Rare Earths	0	0	2	0	3.00
Lynas Rare Earths Competitors	6262	22306	31867	1736	2.47

Lynas Rare Earths presently has a consensus target price of $20.90, suggesting a potential upside of 114.36%. As a group, “Metals & Mining” companies have a potential upside of 47.20%. Given Lynas Rare Earths’ stronger consensus rating and higher possible upside, research analysts clearly believe Lynas Rare Earths is more favorable than its peers.

Valuation and Earnings

This table compares Lynas Rare Earths and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Lynas Rare Earths	N/A	N/A	-56.23
Lynas Rare Earths Competitors	$4.58 billion	$268.01 million	-19.58

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

Profitability

This table compares Lynas Rare Earths and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lynas Rare Earths	N/A	N/A	N/A
Lynas Rare Earths Competitors	-1,174,432,924,478,955,600.00%	67.40%	-2.69%

Summary

Lynas Rare Earths peers beat Lynas Rare Earths on 6 of the 11 factors compared.

Lynas Rare Earths Company Profile

Lynas Rare Earths Limited, together with its subsidiaries, engages in the exploration, development, mining, extraction, and processing of rare earth minerals in Australia and Malaysia. The company holds an interest in the Mount Weld project, Western Australia; and the Kalgoorlie project. Its products include yttrium, lanthanum, cerium, praseodymium, neodymium, promethium, samarium, europium, gadolinium, terbium, dysprosium, holmium, erbium, thulium, ytterbium, and lutetium. The company also develops and operates advanced material processing and concentration plants, as well as offers corporate services. The company was formerly known as Lynas Corporation Limited and changed its name to Lynas Corporation Limited in November 2020. Lynas Rare Earths Limited was incorporated in 1983 and is based in Perth, Australia.