Contrasting Electra Battery Materials (NASDAQ:ELBM) and MP Materials (NYSE:MP)

Electra Battery Materials (NASDAQ:ELBM) and MP Materials (NYSE:MP) are both basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, earnings, institutional ownership, analyst recommendations, risk and profitability.

Volatility and Risk

Electra Battery Materials has a beta of 2.53, indicating that its share price is 153% more volatile than the S&P 500. Comparatively, MP Materials has a beta of 2.32, indicating that its share price is 132% more volatile than the S&P 500.

Valuation & Earnings

This table compares Electra Battery Materials and MP Materials”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Electra Battery Materials	N/A	N/A	-$21.49 million	($1.23)	-1.04
MP Materials	$203.85 million	54.75	-$65.42 million	($0.63)	-100.03

Electra Battery Materials has higher earnings, but lower revenue than MP Materials. MP Materials is trading at a lower price-to-earnings ratio than Electra Battery Materials, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Electra Battery Materials and MP Materials’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Electra Battery Materials	N/A	-41.78%	-16.56%
MP Materials	-41.87%	-9.34%	-4.17%

Analyst Recommendations

This is a summary of recent recommendations for Electra Battery Materials and MP Materials, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Electra Battery Materials	1	0	1	0	2.00
MP Materials	1	4	8	1	2.64

Electra Battery Materials currently has a consensus price target of $2.20, indicating a potential upside of 71.88%. MP Materials has a consensus price target of $77.80, indicating a potential upside of 23.45%. Given Electra Battery Materials’ higher possible upside, research analysts plainly believe Electra Battery Materials is more favorable than MP Materials.

Insider and Institutional Ownership

32.9% of Electra Battery Materials shares are owned by institutional investors. Comparatively, 52.6% of MP Materials shares are owned by institutional investors. 22.7% of Electra Battery Materials shares are owned by insiders. Comparatively, 9.5% of MP Materials shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

MP Materials beats Electra Battery Materials on 8 of the 14 factors compared between the two stocks.

About Electra Battery Materials

Electra Battery Materials Corporation engages in the acquisition and exploration of resource properties in the United States and Canada. It primarily explores for cobalt and silver deposits. The company's flagship project is the Iron Creek cobalt-copper project located in Lemhi County, Idaho. It also operates a cobalt refinery for producing battery materials for the electric vehicle supply chain. The company was formerly known as First Cobalt Corp. and changed its name to Electra Battery Materials Corporation in December 2021. Electra Battery Materials Corporation was incorporated in 2011 and is headquartered in Toronto, Canada.

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.