Financial Comparison: USA Rare Earth (USAR) vs. Its Competitors

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

Risk and Volatility

USA Rare Earth has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500. Comparatively, USA Rare Earth’s competitors have a beta of 0.61, meaning that their average stock price is 39% less volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
USA Rare Earth	N/A	$7.90 million	-28.56
USA Rare Earth Competitors	$10.01 billion	$439.04 million	-16.89

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.

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%	-16.23%
USA Rare Earth Competitors	-982.74%	-11.12%	-3.85%

Institutional & Insider Ownership

35.5% of shares of all “MINING – MISC” companies are held by institutional investors. 46.6% of USA Rare Earth shares are held by company insiders. Comparatively, 9.4% of shares of all “MINING – MISC” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
USA Rare Earth	1	0	4	0	2.60
USA Rare Earth Competitors	742	1834	3515	170	2.50

USA Rare Earth presently has a consensus target price of $26.33, indicating a potential upside of 77.33%. As a group, “MINING – MISC” companies have a potential upside of 15.22%. Given USA Rare Earth’s stronger consensus rating and higher probable upside, research analysts clearly believe USA Rare Earth is more favorable than its competitors.

Summary

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

USA Rare Earth Company Profile

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.