Contrasting MP Materials (NYSE:MP) and Atlas Lithium (NASDAQ:ATLX)

MP Materials (NYSE:MPGet Free Report) and Atlas Lithium (NASDAQ:ATLXGet Free Report) are both basic materials companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, earnings, profitability, risk, analyst recommendations and dividends.

Volatility and Risk

MP Materials has a beta of 1.86, suggesting that its share price is 86% more volatile than the S&P 500. Comparatively, Atlas Lithium has a beta of -0.06, suggesting that its share price is 106% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for MP Materials and Atlas Lithium, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MP Materials 1 0 16 2 3.00
Atlas Lithium 1 1 1 0 2.00

MP Materials presently has a consensus target price of $79.42, indicating a potential upside of 78.05%. Atlas Lithium has a consensus target price of $12.50, indicating a potential upside of 343.26%. Given Atlas Lithium’s higher possible upside, analysts clearly believe Atlas Lithium is more favorable than MP Materials.

Profitability

This table compares MP Materials and Atlas Lithium’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MP Materials -28.00% -2.27% -1.13%
Atlas Lithium N/A -78.17% -42.04%

Valuation and Earnings

This table compares MP Materials and Atlas Lithium”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MP Materials $224.44 million 35.38 -$85.87 million ($0.42) -106.21
Atlas Lithium $90,000.00 924.02 -$28.11 million ($1.52) -1.86

Atlas Lithium has lower revenue, but higher earnings than MP Materials. MP Materials is trading at a lower price-to-earnings ratio than Atlas Lithium, 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, 18.4% of Atlas Lithium shares are owned by institutional investors. 8.2% of MP Materials shares are owned by company insiders. Comparatively, 22.8% of Atlas Lithium shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

MP Materials beats Atlas Lithium on 9 of the 15 factors compared between the two stocks.

About MP Materials

(Get Free Report)

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 Atlas Lithium

(Get Free Report)

Atlas Lithium Corporation operates as a mineral exploration and development company in Brazil. It operates the Minas Gerais lithium project that consists of 54 mineral rights covering an area of 59,275 acres located within the Brazilian Eastern Pegmatitic Province; and Northeastern Brazil lithium project, which consists of 7 mineral rights covering an area of 16,266 acres in the States of ParaĆ­ba and Rio Grande do Norte in northeastern Brazil. The company also owns 100% interests in various mining concessions for gold, diamond, and industrial sand; and early-stage projects and properties in other minerals, such as nickel, copper, rare earths, graphite, and titanium; as well as participates in iron and quartzite projects. The company was formerly known as Brazil Minerals, Inc. and changed its name to Atlas Lithium Corporation in October 2022. Atlas Lithium Corporation was founded in 2011 and is based in Belo Horizonte, Brazil.

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