Ivanhoe Mines (OTCMKTS:IVPAF – Get Free Report) and MP Materials (NYSE:MP – Get Free Report) are both materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, dividends, institutional ownership, profitability and analyst recommendations.
Profitability
This table compares Ivanhoe Mines and MP Materials’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ivanhoe Mines | 23.47% | 5.10% | 3.85% |
| MP Materials | -28.00% | -2.27% | -1.13% |
Valuation and Earnings
This table compares Ivanhoe Mines and MP Materials”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ivanhoe Mines | $441.61 million | 23.22 | $261.55 million | $0.09 | 79.89 |
| MP Materials | $224.44 million | 32.80 | -$85.87 million | ($0.42) | -98.46 |
Ivanhoe Mines has higher revenue and earnings than MP Materials. MP Materials is trading at a lower price-to-earnings ratio than Ivanhoe Mines, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Ivanhoe Mines has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500. Comparatively, MP Materials has a beta of 1.86, indicating that its share price is 86% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings and target prices for Ivanhoe Mines and MP Materials, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ivanhoe Mines | 0 | 4 | 3 | 1 | 2.62 |
| MP Materials | 1 | 0 | 15 | 2 | 3.00 |
Ivanhoe Mines presently has a consensus price target of $15.20, indicating a potential upside of 111.40%. MP Materials has a consensus price target of $78.21, indicating a potential upside of 89.12%. Given Ivanhoe Mines’ higher probable upside, equities analysts plainly believe Ivanhoe Mines is more favorable than MP Materials.
Institutional & Insider Ownership
52.5% of MP Materials shares are owned by institutional investors. 8.2% of MP Materials shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
Ivanhoe Mines beats MP Materials on 8 of the 15 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 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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