Financial Contrast: Coeur Mining (NYSE:CDE) and USA Rare Earth (NASDAQ:USAR)

USA Rare Earth (NASDAQ:USAR) and Coeur Mining (NYSE:CDE) are both materials companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, institutional ownership, valuation and dividends.

Insider & Institutional Ownership

63.0% of Coeur Mining shares are held by institutional investors. 9.1% of USA Rare Earth shares are held by company insiders. Comparatively, 0.9% of Coeur Mining shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings for USA Rare Earth and Coeur Mining, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
USA Rare Earth	1	0	10	0	2.82
Coeur Mining	0	4	9	1	2.79

USA Rare Earth presently has a consensus price target of $33.71, suggesting a potential upside of 120.27%. Coeur Mining has a consensus price target of $25.50, suggesting a potential upside of 35.46%. Given USA Rare Earth’s stronger consensus rating and higher possible upside, research analysts clearly believe USA Rare Earth is more favorable than Coeur Mining.

Earnings & Valuation

This table compares USA Rare Earth and Coeur Mining”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	2,283.95	-$297.56 million	($2.43)	-6.30
Coeur Mining	$2.07 billion	9.35	$585.87 million	$1.17	16.09

Coeur Mining has higher revenue and earnings than USA Rare Earth. USA Rare Earth is trading at a lower price-to-earnings ratio than Coeur Mining, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares USA Rare Earth and Coeur Mining’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%
Coeur Mining	26.82%	11.03%	7.57%

Risk and Volatility

USA Rare Earth has a beta of 2.58, meaning that its stock price is 158% more volatile than the S&P 500. Comparatively, Coeur Mining has a beta of 1.39, meaning that its stock price is 39% more volatile than the S&P 500.

Summary

Coeur Mining beats USA Rare Earth on 9 of the 15 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 Coeur Mining

Coeur Mining, Inc. explores for precious metals in the United States, Canada, and Mexico. The company primarily explores for gold, silver, zinc, and lead properties. It markets and sells its concentrates to third-party customers, smelters, under off-take agreements. The company was formerly known as Coeur d'Alene Mines Corporation and changed its name to Coeur Mining, Inc. in May 2013. Coeur Mining, Inc. was incorporated in 1928 and is headquartered in Chicago, Illinois.