Head to Head Comparison: USA Rare Earth (USAR) and Its Peers

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

Profitability

This table compares USA Rare Earth and its peers’ 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%	-10.21%	-3.54%

Valuation and Earnings

This table compares USA Rare Earth and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
USA Rare Earth	N/A	$7.90 million	-27.79
USA Rare Earth Competitors	$10.01 billion	$439.04 million	-16.02

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

Institutional & Insider 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, 9.6% of shares of all “MINING – MISC” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

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

Analyst Ratings

This is a summary of recent ratings and price targets for USA Rare Earth and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
USA Rare Earth	1	0	4	0	2.60
USA Rare Earth Competitors	750	1843	3522	170	2.50

USA Rare Earth presently has a consensus price target of $26.33, indicating a potential upside of 82.24%. As a group, “MINING – MISC” companies have a potential upside of 18.29%. Given USA Rare Earth’s stronger consensus rating and higher possible upside, equities research analysts plainly believe USA Rare Earth is more favorable than its peers.

Summary

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

USA Rare Earth Company Profile

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.