Contrasting Ivanhoe Mines (OTCMKTS:IVPAF) & USA Rare Earth (NASDAQ:USAR)

Ivanhoe Mines (OTCMKTS:IVPAF) and USA Rare Earth (NASDAQ:USAR) are both basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, risk, institutional ownership, earnings, profitability, valuation and analyst recommendations.

Volatility and Risk

Ivanhoe Mines has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500. Comparatively, USA Rare Earth has a beta of 2.33, suggesting that its share price is 133% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Ivanhoe Mines and USA Rare Earth, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ivanhoe Mines	0	5	3	2	2.70
USA Rare Earth	1	0	8	0	2.78

Ivanhoe Mines presently has a consensus price target of $15.20, suggesting a potential upside of 71.36%. USA Rare Earth has a consensus price target of $35.40, suggesting a potential upside of 26.38%. Given Ivanhoe Mines’ higher possible upside, analysts clearly believe Ivanhoe Mines is more favorable than USA Rare Earth.

Valuation and Earnings

This table compares Ivanhoe Mines and USA Rare Earth”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ivanhoe Mines	$441.61 million	28.65	$261.55 million	$0.09	98.56
USA Rare Earth	$1.64 million	3,809.36	-$297.56 million	($3.92)	-7.15

Ivanhoe Mines has higher revenue and earnings than USA Rare Earth. USA Rare Earth is trading at a lower price-to-earnings ratio than Ivanhoe Mines, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Ivanhoe Mines and USA Rare Earth’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ivanhoe Mines	24.86%	5.20%	3.91%
USA Rare Earth	N/A	-15.39%	-10.08%

Summary

Ivanhoe Mines beats USA Rare Earth on 9 of the 13 factors compared between the two stocks.

About Ivanhoe Mines

Ivanhoe Mines Ltd. engages in the mining, development, and exploration of minerals and precious metals primarily in Africa. It explores for platinum, palladium, nickel, copper, gold, rhodium, zinc, silver, germanium, and lead deposits. The company's projects include the Platreef project located in the Northern Limb of South Africa's Bushveld Complex; the Kipushi project located in Haut-Katanga Province, Democratic Republic of Congo; and the Kamoa-Kakula project located within the Central African Copperbelt. It also holds a 100% interest in the Western Foreland exploration project covering an area of approximately 2,407 square kilometers located in the Democratic Republic of Congo. The company was formerly known as Ivanplats Limited and changed its name to Ivanhoe Mines Ltd. in August 2013. The company was incorporated in 1993 and is based in Vancouver, Canada.

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.