Critical Review: USA Rare Earth (USAR) & Its Rivals

USA Rare Earth (NASDAQ:USAR) is one of 103 publicly-traded companies in the “MINING – MISC” industry, but how does it compare to its competitors? We will compare USA Rare Earth to similar businesses based on the strength of its valuation, dividends, risk, analyst recommendations, earnings, profitability and institutional ownership.

Valuation & Earnings

This table compares USA Rare Earth and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
USA Rare Earth	N/A	$7.90 million	-23.90
USA Rare Earth Competitors	$10.01 billion	$439.04 million	-17.02

USA Rare Earth’s competitors have higher revenue and earnings than USA Rare Earth. USA Rare Earth is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares USA Rare Earth and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
USA Rare Earth	N/A	-16.58%	-16.23%
USA Rare Earth Competitors	-853.98%	-10.22%	-3.55%

Analyst Recommendations

This is a breakdown of recent ratings for USA Rare Earth and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
USA Rare Earth	1	0	4	0	2.60
USA Rare Earth Competitors	769	1855	3541	173	2.49

USA Rare Earth currently has a consensus price target of $26.33, indicating a potential upside of 111.85%. As a group, “MINING – MISC” companies have a potential upside of 12.86%. Given USA Rare Earth’s stronger consensus rating and higher probable upside, equities research analysts clearly believe USA Rare Earth is more favorable than its competitors.

Volatility & Risk

USA Rare Earth has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500. Comparatively, USA Rare Earth’s competitors have a beta of 0.61, indicating that their average stock price is 39% less volatile than the S&P 500.

Insider & Institutional Ownership

35.5% of shares of all “MINING – MISC” companies are owned by institutional investors. 46.6% of USA Rare Earth shares are owned by company insiders. Comparatively, 9.4% of shares of all “MINING – MISC” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

USA Rare Earth competitors beat USA Rare Earth on 7 of the 13 factors compared.

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.