REalloys (NASDAQ:ALOY – Get Free Report) and USA Rare Earth (NASDAQ:USAR – Get Free Report) are both materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, risk, earnings, profitability, valuation, dividends and institutional ownership.
Analyst Ratings
This is a summary of current ratings and target prices for REalloys and USA Rare Earth, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| REalloys | 1 | 0 | 1 | 1 | 2.67 |
| USA Rare Earth | 1 | 0 | 9 | 1 | 2.91 |
REalloys presently has a consensus price target of $16.00, indicating a potential upside of 174.21%. USA Rare Earth has a consensus price target of $33.71, indicating a potential upside of 354.37%. Given USA Rare Earth’s stronger consensus rating and higher probable upside, analysts plainly believe USA Rare Earth is more favorable than REalloys.
Earnings and Valuation
This table compares REalloys and USA Rare Earth”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| REalloys | $2.43 million | 167.29 | -$4.43 million | ($3.16) | -1.85 |
| USA Rare Earth | $1.64 million | 1,107.21 | -$297.56 million | ($2.43) | -3.05 |
REalloys has higher revenue and earnings than USA Rare Earth. USA Rare Earth is trading at a lower price-to-earnings ratio than REalloys, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares REalloys and USA Rare Earth’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| REalloys | -5,145.12% | -192.93% | -163.20% |
| USA Rare Earth | N/A | -9.04% | -7.13% |
Institutional and Insider Ownership
3.6% of REalloys shares are held by institutional investors. 20.1% of REalloys shares are held by company insiders. Comparatively, 9.1% of USA Rare Earth shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Risk & Volatility
REalloys has a beta of 1.43, indicating that its stock price is 43% more volatile than the S&P 500. Comparatively, USA Rare Earth has a beta of 2.79, indicating that its stock price is 179% more volatile than the S&P 500.
Summary
USA Rare Earth beats REalloys on 9 of the 13 factors compared between the two stocks.
About REalloys
REalloys Inc. operates as a rare earth metals and permanent magnet company in North America. The company produces rare earth metals, such as neodymium, praseodymium, dysprosium, terbium, samarium, gadolinium, yttrium, and scandium; and magnets, such as NdFeB Magnets, SmFe12 Magnets, and MnBi Magnets. The company was founded in 2024 and is headquartered in Euclid, Ohio.
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.
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