USA Rare Earth (NASDAQ:USAR – Get Free Report) and Lundin Mining (OTCMKTS:LUNMF – Get Free Report) are both materials companies, but which is the better business? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, profitability, valuation, earnings and analyst recommendations.
Profitability
This table compares USA Rare Earth and Lundin Mining’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| USA Rare Earth | N/A | -9.04% | -7.13% |
| Lundin Mining | 31.82% | 13.18% | 9.73% |
Valuation & Earnings
This table compares USA Rare Earth and Lundin Mining”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| USA Rare Earth | $1.64 million | 2,059.23 | -$297.56 million | ($2.43) | -5.68 |
| Lundin Mining | $4.05 billion | 4.92 | $1.28 billion | $1.73 | 13.54 |
Lundin Mining has higher revenue and earnings than USA Rare Earth. USA Rare Earth is trading at a lower price-to-earnings ratio than Lundin Mining, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings for USA Rare Earth and Lundin Mining, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| USA Rare Earth | 1 | 0 | 10 | 0 | 2.82 |
| Lundin Mining | 0 | 8 | 4 | 0 | 2.33 |
USA Rare Earth currently has a consensus target price of $33.71, indicating a potential upside of 144.31%. Given USA Rare Earth’s stronger consensus rating and higher possible upside, analysts plainly believe USA Rare Earth is more favorable than Lundin Mining.
Volatility & Risk
USA Rare Earth has a beta of 2.66, indicating that its share price is 166% more volatile than the S&P 500. Comparatively, Lundin Mining has a beta of 1.27, indicating that its share price is 27% more volatile than the S&P 500.
Institutional and Insider Ownership
0.1% of Lundin Mining shares are held by institutional investors. 9.1% of USA Rare Earth shares are held by company insiders. Comparatively, 0.4% of Lundin Mining shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Summary
Lundin Mining beats USA Rare Earth on 8 of the 14 factors compared between the two stocks.
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.
About Lundin Mining
Lundin Mining Corporation, a diversified base metals mining company, engages in the exploration, development, and mining of mineral properties in Chile, Brazil, the United States, Portugal, Sweden, and Argentina. It primarily produces copper, zinc, gold, nickel, and molybdenum, as well as lead, silver, and other metals. The company holds 100% interests in the Chapada mine located in Brazil; the Eagle mine located in the United States; the Neves-Corvo mine located in Portugal; and the Zinkgruvan mine located in Sweden. It also holds 80% interests in the Candelaria and Ojos del Salado mining complex; and 51% interest in the Caserones copper-molybdenum mine located in Chile, as well as owns the copper gold Josemaria project located in Argentina. The company was formerly known as South Atlantic Ventures Ltd. and changed its name to Lundin Mining Corporation in August 2004. Lundin Mining Corporation was incorporated in 1994 and is headquartered in Vancouver, Canada.
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