Eldorado Gold (NYSE:EGO) and USA Rare Earth (NASDAQ:USAR) Head to Head Review

Eldorado Gold (NYSE:EGO) and USA Rare Earth (NASDAQ:USAR) are both mid-cap materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, earnings, profitability, risk and dividends.

Volatility & Risk

Eldorado Gold has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500. Comparatively, USA Rare Earth has a beta of 2.66, meaning that its stock price is 166% more volatile than the S&P 500.

Insider & Institutional Ownership

69.6% of Eldorado Gold shares are held by institutional investors. 0.6% of Eldorado Gold shares are held by company insiders. Comparatively, 9.1% of USA Rare Earth shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and target prices for Eldorado Gold and USA Rare Earth, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eldorado Gold	0	7	6	2	2.67
USA Rare Earth	1	0	10	0	2.82

Eldorado Gold presently has a consensus price target of $46.57, indicating a potential upside of 27.10%. USA Rare Earth has a consensus price target of $33.71, indicating a potential upside of 198.89%. Given USA Rare Earth’s stronger consensus rating and higher possible upside, analysts plainly believe USA Rare Earth is more favorable than Eldorado Gold.

Profitability

This table compares Eldorado Gold and USA Rare Earth’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Eldorado Gold	29.83%	10.91%	7.07%
USA Rare Earth	N/A	-9.04%	-7.13%

Valuation & Earnings

This table compares Eldorado Gold and USA Rare Earth”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eldorado Gold	$1.82 billion	5.27	$507.26 million	$2.82	12.99
USA Rare Earth	$1.64 million	1,683.20	-$297.56 million	($2.43)	-4.64

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

Summary

Eldorado Gold beats USA Rare Earth on 8 of the 14 factors compared between the two stocks.

About Eldorado Gold

Eldorado Gold Corporation, together with its subsidiaries, engages in the mining, exploration, development, and sale of mineral products primarily in Turkey, Canada, Greece, and Romania. The company primarily produces gold, as well as silver, lead, and zinc. It holds a 100% interest in the Kisladag and Efemçukuru mines located in Turkey; Lamaque complex located in Canada; and Olympias, Stratoni, Skouries, Perama Hill, and Sapes gold mines located in Greece, as well as the 80.5% interest in Certej development projects located in Romania. The company was formerly known as Eldorado Corporation Ltd. and changed its name to Eldorado Gold Corporation in April 1996. Eldorado Gold Corporation was incorporated in 1996 and is headquartered in Vancouver, Canada.

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.