Analyzing MP Materials (NYSE:MP) and Kinross Gold (NYSE:KGC)

MP Materials (NYSE:MP) and Kinross Gold (NYSE:KGC) are both materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, risk, earnings, institutional ownership, analyst recommendations, profitability and dividends.

Profitability

This table compares MP Materials and Kinross Gold’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MP Materials	-19.85%	-1.21%	-0.62%
Kinross Gold	37.52%	34.00%	23.84%

Volatility and Risk

MP Materials has a beta of 1.94, suggesting that its stock price is 94% more volatile than the S&P 500. Comparatively, Kinross Gold has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500.

Institutional and Insider Ownership

52.5% of MP Materials shares are owned by institutional investors. Comparatively, 63.7% of Kinross Gold shares are owned by institutional investors. 8.2% of MP Materials shares are owned by insiders. Comparatively, 1.0% of Kinross Gold shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for MP Materials and Kinross Gold, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MP Materials	2	0	13	2	2.88
Kinross Gold	0	3	9	1	2.85

MP Materials currently has a consensus target price of $78.21, suggesting a potential upside of 59.21%. Kinross Gold has a consensus target price of $38.43, suggesting a potential upside of 37.71%. Given MP Materials’ stronger consensus rating and higher probable upside, equities analysts plainly believe MP Materials is more favorable than Kinross Gold.

Valuation & Earnings

This table compares MP Materials and Kinross Gold”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MP Materials	$305.38 million	28.65	-$85.87 million	($0.34)	-144.48
Kinross Gold	$7.05 billion	4.69	$2.39 billion	$2.64	10.57

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

Summary

Kinross Gold beats MP Materials 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 Kinross Gold

Kinross Gold Corporation, together with its subsidiaries, engages in the acquisition, exploration, and development of gold properties principally in the United States, Brazil, Chile, Canada, and Mauritania. The company operates the Fort Knox mine and the Manh Choh project in Alaska, as well as the Round Mountain and the Bald Mountain mines in Nevada, the United States; the Paracatu mine in Brazil; the La Coipa and the Lobo-Marte project in Chile; the Tasiast mine in Mauritania; and the Great Bear project in Canada. It is also involved in the extraction and processing of gold-containing ores; reclamation of gold mining properties; and production and sale of silver. Kinross Gold Corporation was founded in 1993 and is headquartered in Toronto, Canada.