Head-To-Head Comparison: USA Rare Earth (USAR) and Its Rivals

USA Rare Earth (NASDAQ:USAR) is one of 103 public companies in the “MINING – MISC” industry, but how does it compare to its competitors? We will compare USA Rare Earth to similar companies based on the strength of its valuation, institutional ownership, earnings, dividends, profitability, analyst recommendations and risk.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
USA Rare Earth	1	0	4	0	2.60
USA Rare Earth Competitors	731	1823	3499	170	2.50

USA Rare Earth presently has a consensus target price of $26.00, indicating a potential upside of 56.16%. As a group, “MINING – MISC” companies have a potential upside of 12.81%. Given USA Rare Earth’s stronger consensus rating and higher probable upside, equities research analysts clearly believe USA Rare Earth is more favorable than its competitors.

Earnings & Valuation

This table compares USA Rare Earth and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
USA Rare Earth	N/A	$7.90 million	-61.67
USA Rare Earth Competitors	$10.19 billion	$448.48 million	-17.58

USA Rare Earth’s competitors have higher revenue and earnings than USA Rare Earth. USA Rare Earth is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

USA Rare Earth has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500. Comparatively, USA Rare Earth’s competitors have a beta of 0.62, suggesting that their average share price is 38% less volatile than the S&P 500.

Profitability

This table compares USA Rare Earth and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
USA Rare Earth	N/A	-16.58%	-0.67%
USA Rare Earth Competitors	-1,016.34%	-12.38%	-4.50%

Institutional and Insider Ownership

35.5% of shares of all “MINING – MISC” companies are owned by institutional investors. 46.6% of USA Rare Earth shares are owned by insiders. Comparatively, 9.6% of shares of all “MINING – MISC” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

USA Rare Earth beats its competitors on 7 of the 13 factors compared.

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.