Contrasting MP Materials (NYSE:MP) & Norsk Hydro ASA (OTCMKTS:NHYDY)

MP Materials (NYSE:MP) and Norsk Hydro ASA (OTCMKTS:NHYDY) are both large-cap basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, profitability, dividends, analyst recommendations, earnings, institutional ownership and valuation.

Profitability

This table compares MP Materials and Norsk Hydro ASA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MP Materials	-28.00%	-2.37%	-1.18%
Norsk Hydro ASA	3.11%	10.52%	5.50%

Analyst Ratings

This is a summary of current ratings and target prices for MP Materials and Norsk Hydro ASA, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MP Materials	1	0	14	2	3.00
Norsk Hydro ASA	2	5	4	1	2.33

MP Materials presently has a consensus price target of $80.33, indicating a potential upside of 18.83%. Given MP Materials’ stronger consensus rating and higher probable upside, equities research analysts plainly believe MP Materials is more favorable than Norsk Hydro ASA.

Insider & Institutional Ownership

52.6% of MP Materials shares are held by institutional investors. Comparatively, 0.0% of Norsk Hydro ASA shares are held by institutional investors. 8.2% of MP Materials shares are held by insiders. Comparatively, 0.0% of Norsk Hydro ASA shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares MP Materials and Norsk Hydro ASA”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MP Materials	$224.44 million	53.52	-$85.87 million	($0.42)	-160.97
Norsk Hydro ASA	$20.05 billion	1.16	$647.52 million	$0.31	37.87

Norsk Hydro ASA has higher revenue and earnings than MP Materials. MP Materials is trading at a lower price-to-earnings ratio than Norsk Hydro ASA, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

MP Materials has a beta of 1.9, suggesting that its stock price is 90% more volatile than the S&P 500. Comparatively, Norsk Hydro ASA has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500.

Summary

MP Materials beats Norsk Hydro ASA on 8 of the 15 factors compared between the two stocks.

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.

About Norsk Hydro ASA

Norsk Hydro ASA engages in the power production, bauxite extraction, alumina refining, aluminium smelting, and recycling activities; and provision of extruded solutions worldwide. It operates through Hydro Bauxite & Alumina, Hydro Aluminium Metal, Hydro Metal Markets, Hydro Extrusions, and Hydro Energy segments. The Hydro Bauxite & Alumina segment engages in bauxite mining activities, production of alumina, and related commercial activities, primarily the sale of alumina. The Hydro Aluminium Metal segment is involved in the primary aluminum production casting activities. This segment principally offers extrusion ingots, foundry alloys, and sheet and standard ingots. The Metal Markets segment sells products from the company’s primary metal plants; operates recyclers; and trades in physical and financial metals. The Hydro Extrusions segment offers extrusion profiles, building systems, and precision tubing products for construction, automotive and heating, and ventilation and air conditioning sectors, as well as operates recycling facilities. The Hydro Energy segment engages in the trading and wholesale business in Brazil; energy sourcing operations; and operation of power stations in Norway, as well as renewable energy production, such as wind and solar, battery materials, and green hydrogen. Norsk Hydro ASA was founded in 1905 and is headquartered in Oslo, Norway.