Reviewing Norsk Hydro ASA (OTCMKTS:NHYDY) and Rare Element Resources (OTCMKTS:REEMF)

Rare Element Resources (OTCMKTS:REEMF) and Norsk Hydro ASA (OTCMKTS:NHYDY) are both basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, dividends, profitability, analyst recommendations, valuation, risk and institutional ownership.

Institutional & Insider Ownership

0.0% of Norsk Hydro ASA shares are held by institutional investors. 1.3% of Rare Element Resources shares are held by insiders. Comparatively, 0.0% of Norsk Hydro ASA shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Rare Element Resources has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500. Comparatively, Norsk Hydro ASA has a beta of 1.5, suggesting that its stock price is 50% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Rare Element Resources and Norsk Hydro ASA, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rare Element Resources	0	0	0	0	0.00
Norsk Hydro ASA	0	3	1	1	2.60

Profitability

This table compares Rare Element Resources and Norsk Hydro ASA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rare Element Resources	N/A	-46.67%	-42.03%
Norsk Hydro ASA	4.37%	11.24%	5.84%

Valuation & Earnings

This table compares Rare Element Resources and Norsk Hydro ASA”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rare Element Resources	N/A	N/A	-$18.45 million	($0.02)	-52.00
Norsk Hydro ASA	$19.41 billion	0.65	$538.47 million	$0.45	14.20

Norsk Hydro ASA has higher revenue and earnings than Rare Element Resources. Rare Element Resources is trading at a lower price-to-earnings ratio than Norsk Hydro ASA, indicating that it is currently the more affordable of the two stocks.

Summary

Norsk Hydro ASA beats Rare Element Resources on 12 of the 13 factors compared between the two stocks.

About Rare Element Resources

Rare Element Resources Ltd. engages in the exploration of mineral properties in the United States and Canada. It holds 100% interest in the Bear Lodge property that comprises the Bear Lodge REE project; and the Sundance Gold project located in Crook County, northeast Wyoming. Rare Element Resources Ltd. is headquartered in Littleton, Colorado.

About Norsk Hydro ASA

Norsk Hydro ASA engages in the power production, bauxite extraction, alumina refining, aluminium smelting, and recycling activities; and provision of extruded solutions worldwide. It operates through Hydro Bauxite & Alumina, Hydro Aluminium Metal, Hydro Metal Markets, Hydro Extrusions, and Hydro Energy segments. The Hydro Bauxite & Alumina segment engages in bauxite mining activities, production of alumina, and related commercial activities, primarily the sale of alumina. The Hydro Aluminium Metal segment is involved in the primary aluminum production casting activities. This segment principally offers extrusion ingots, foundry alloys, and sheet and standard ingots. The Metal Markets segment sells products from the company’s primary metal plants; operates recyclers; and trades in physical and financial metals. The Hydro Extrusions segment offers extrusion profiles, building systems, and precision tubing products for construction, automotive and heating, and ventilation and air conditioning sectors, as well as operates recycling facilities. The Hydro Energy segment engages in the trading and wholesale business in Brazil; energy sourcing operations; and operation of power stations in Norway, as well as renewable energy production, such as wind and solar, battery materials, and green hydrogen. Norsk Hydro ASA was founded in 1905 and is headquartered in Oslo, Norway.