MP Materials (NYSE:MP – Get Free Report) and AngloGold Ashanti (NYSE:AU – Get Free Report) are both materials companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, risk, institutional ownership and valuation.
Profitability
This table compares MP Materials and AngloGold Ashanti’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| MP Materials | -19.85% | -1.21% | -0.62% |
| AngloGold Ashanti | 32.19% | 38.77% | 25.72% |
Earnings & Valuation
This table compares MP Materials and AngloGold Ashanti”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| MP Materials | $305.38 million | 23.43 | -$85.87 million | ($0.34) | -118.18 |
| AngloGold Ashanti | $11.82 billion | 3.96 | $2.64 billion | $7.46 | 12.43 |
AngloGold Ashanti has higher revenue and earnings than MP Materials. MP Materials is trading at a lower price-to-earnings ratio than AngloGold Ashanti, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
52.5% of MP Materials shares are held by institutional investors. Comparatively, 36.1% of AngloGold Ashanti shares are held by institutional investors. 8.2% of MP Materials shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for MP Materials and AngloGold Ashanti, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| MP Materials | 2 | 1 | 13 | 1 | 2.76 |
| AngloGold Ashanti | 0 | 2 | 6 | 2 | 3.00 |
MP Materials currently has a consensus price target of $71.92, suggesting a potential upside of 78.98%. AngloGold Ashanti has a consensus price target of $120.14, suggesting a potential upside of 29.57%. Given MP Materials’ higher probable upside, equities research analysts clearly believe MP Materials is more favorable than AngloGold Ashanti.
Volatility & Risk
MP Materials has a beta of 1.98, indicating that its stock price is 98% more volatile than the S&P 500. Comparatively, AngloGold Ashanti has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500.
Summary
AngloGold Ashanti beats MP Materials on 9 of the 15 factors compared between the two stocks.
About MP Materials
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 AngloGold Ashanti
AngloGold Ashanti plc operates as a gold mining company in Africa, Australia, and the Americas. The company primarily explores for gold, as well as produces silver and sulphuric acid as by-products. Its flagship property is a 100% owned Geita mine located in the Lake Victoria goldfields of the Mwanza region in north-western Tanzania. AngloGold Ashanti plc was incorporated in 1944 and is headquartered in Greenwood Village, Colorado.
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