Reviewing Skeena Resources (NYSE:SKE) & USA Rare Earth (NASDAQ:USAR)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Skeena Resources	N/A	-60.92%	-20.25%
USA Rare Earth	N/A	-16.58%	-0.67%

Valuation and Earnings

This table compares Skeena Resources 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
Skeena Resources	N/A	N/A	-$110.89 million	($1.09)	-14.89
USA Rare Earth	N/A	N/A	$7.90 million	($0.27)	-74.56

USA Rare Earth is trading at a lower price-to-earnings ratio than Skeena Resources, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Skeena Resources has a beta of 1.27, indicating that its stock price is 27% more volatile than the S&P 500. Comparatively, USA Rare Earth has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Skeena Resources and USA Rare Earth, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Skeena Resources	1	0	4	1	2.83
USA Rare Earth	1	0	4	0	2.60

USA Rare Earth has a consensus target price of $26.00, indicating a potential upside of 29.16%. Given USA Rare Earth’s higher possible upside, analysts clearly believe USA Rare Earth is more favorable than Skeena Resources.

Institutional and Insider Ownership

45.2% of Skeena Resources shares are owned by institutional investors. 2.0% of Skeena Resources shares are owned by insiders. Comparatively, 46.6% of USA Rare Earth shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

USA Rare Earth beats Skeena Resources on 6 of the 11 factors compared between the two stocks.

About Skeena Resources

Skeena Resources Limited explores for and develops mineral properties in Canada. The company explores for gold, silver, copper, and other precious metal deposits. It holds 100% interests in the Snip gold mine comprising one mining lease and nine mineral tenures that covers an area of approximately 4,724 hectares; and the Eskay Creek gold mine that consists of eight mineral leases, two surface leases, and various unpatented mining claims comprising 7,666 hectares located in British Columbia, Canada. The company was formerly known as Prolific Resources Ltd. and changed its name to Skeena Resources Limited in June 1990. Skeena Resources Limited was incorporated in 1979 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.