McEwen (NYSE:MUX – Get Free Report) and MP Materials (NYSE:MP – Get Free Report) are both basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, earnings and institutional ownership.
Analyst Ratings
This is a summary of recent recommendations and price targets for McEwen and MP Materials, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| McEwen | 0 | 2 | 3 | 0 | 2.60 |
| MP Materials | 1 | 0 | 17 | 2 | 3.00 |
McEwen currently has a consensus target price of $29.83, suggesting a potential upside of 74.07%. MP Materials has a consensus target price of $79.25, suggesting a potential upside of 72.23%. Given McEwen’s higher probable upside, equities research analysts plainly believe McEwen is more favorable than MP Materials.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| McEwen | 31.40% | 13.65% | 9.05% |
| MP Materials | -28.00% | -2.27% | -1.13% |
Institutional & Insider Ownership
17.0% of McEwen shares are held by institutional investors. Comparatively, 52.5% of MP Materials shares are held by institutional investors. 14.8% of McEwen shares are held by insiders. Comparatively, 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 is poised for long-term growth.
Earnings & Valuation
This table compares McEwen and MP Materials”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| McEwen | $197.55 million | 5.18 | $34.43 million | $1.18 | 14.52 |
| MP Materials | $224.44 million | 36.50 | -$85.87 million | ($0.42) | -109.56 |
McEwen has higher earnings, but lower revenue than MP Materials. MP Materials is trading at a lower price-to-earnings ratio than McEwen, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
McEwen has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500. Comparatively, MP Materials has a beta of 1.86, meaning that its share price is 86% more volatile than the S&P 500.
Summary
McEwen beats MP Materials on 8 of the 15 factors compared between the two stocks.
About McEwen
McEwen Mining Inc. engages in the exploration, development, production, and sale of gold and silver. It also explores for copper deposits. The company owns 100% interests in the El Gallo and Fenix projects located in Mexico; and the Black Fox Mine and Stock Mill, Grey Fox, and Froome and Tamarack properties in Canada. It also owns interests in the Fuller, Davidson-Tisdale, Buffalo Ankerite, and Paymaster exploration properties located in Canada; and a 49% interest in the San José mine located in Argentina. In addition, the company owns 100% interests in the Gold Bar and Tonkin properties located in Eureka County, Nevada; and interests in the Los Azules copper project located in the cordilleran region in the province of San Juan, Argentina. The company was formerly known as US Gold Corporation and changed its name to McEwen Mining Inc. in January 2012. McEwen Mining Inc. was founded in 1979 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.
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