Worthington Steel (NYSE:WS – Get Free Report) and MP Materials (NYSE:MP – Get Free Report) are both mid-cap materials companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.
Valuation & Earnings
This table compares Worthington Steel and MP Materials”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Worthington Steel | $5.30 billion | 0.40 | $8.50 million | ($0.61) | -67.05 |
| MP Materials | $305.38 million | 23.04 | -$85.87 million | ($0.34) | -116.21 |
Worthington Steel has higher revenue and earnings than MP Materials. MP Materials is trading at a lower price-to-earnings ratio than Worthington Steel, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Worthington Steel and MP Materials’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Worthington Steel | -0.56% | 7.49% | 3.14% |
| MP Materials | -19.85% | -1.21% | -0.62% |
Volatility & Risk
Worthington Steel has a beta of 2.24, suggesting that its share price is 124% more volatile than the S&P 500. Comparatively, MP Materials has a beta of 1.98, suggesting that its share price is 98% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Worthington Steel and MP Materials, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Worthington Steel | 1 | 1 | 1 | 0 | 2.00 |
| MP Materials | 2 | 1 | 13 | 1 | 2.76 |
Worthington Steel presently has a consensus price target of $46.00, suggesting a potential upside of 12.47%. MP Materials has a consensus price target of $71.92, suggesting a potential upside of 82.01%. Given MP Materials’ stronger consensus rating and higher possible upside, analysts clearly believe MP Materials is more favorable than Worthington Steel.
Institutional and Insider Ownership
45.4% of Worthington Steel shares are held by institutional investors. Comparatively, 52.5% of MP Materials shares are held by institutional investors. 2.7% of Worthington Steel shares are held by company insiders. Comparatively, 8.2% of MP Materials shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Summary
MP Materials beats Worthington Steel on 8 of the 15 factors compared between the two stocks.
About Worthington Steel
Worthington Steel, Inc. operates as a steel processor in North America. It offers carbon flat-rolled steel and tailor welded blanks, as well as electrical steel laminations; and aluminum tailor welded blanks. The company serves various end-markets, including automotive, heavy truck, agriculture, construction, and energy. Worthington Steel, Inc. was incorporated in 2023 and is based in Columbus, Ohio.
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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